In an effort to avoid a repeat of the May 6th “flash crash” when computerized trading markets tumbled out of control, the Securities and Exchange Commission has voted unanimously to require audit trails to cover all trading orders from start to finish. Visiting Law Professor Elizabeth Nowicki, a former SEC and Wall Street attorney, says the proposal to allow the SEC constant, real-time access to that information to better monitor the markets is a great idea in support of investor protection — but it won’t fix everything.
“The reality is that this sort of information aggregation system is not a panacea, and, given how fast and sophisticated today’s trading markets are, it is unrealistic to expect that the SEC can ever truly be a real-time market regulator. Investors simply cannot expect that of the SEC.”
Contact Elizabeth Nowicki, 518-867-5355, firstname.lastname@example.org