23 October 2017
Find out more

SEC votes in favour of $4 billion audit trail; Finra widens net to back office

27 May 2010  |  7076 views  |  0 Stock market quotes

The Securities and Exchange Commission has voted to approve a proposal requiring national securities exchange to establish a consolidated audit trail of all stocks traded in US markets from order through to execution.

The regulator says the system would enable it to better track trading patterns and reconstruct events leading to market disruptions such as the 6 May 'flash crash'.

The database, to be operational within three years, would come with a $4 billion price tag and $2 billion a year running costs.

SEC Chairman Mary Schapiro says: "This consolidated audit trail would, for the first time ever, allow the SEC and other market regulators to track trade data across multiple markets, products and participants in real time. It would allow us to rapidly reconstruct trading activity and quickly analyze both suspicious trading behavior and unusual market events."

The decision should provide a welcome fillip to vendors of market surveillance software. John Bates, CTO of Progress Software says: "While it's always been a concern that regulators do not have real-time access and monitoring capabilities for all securities market data, it is very encouraging to see that they are about to address the issue."

Separately, the US-based Financial Industry Regulatory Authority (Finra) has proposed a rule change designed to enhance oversight of broker-dealers' 'back-office' operations by expanding registration requirements to operational suport staff. It would be backed up by an SEC-approved 'qualification programme' for back-office staff "to heighten awareness of operating in a regulated environment and to demonstrate a basic understanding of the securities industry".

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Flash crash prompts circuit breaker roll-out

Flash crash prompts circuit breaker roll-out

19 May 2010  |  8617 views  |  0 comments
'Flash crash' post-mortem points to high speed trading curbs

'Flash crash' post-mortem points to high speed trading curbs

12 May 2010  |  9338 views  |  0 comments
SEC summons exchange chiefs in wake of Dow plunge

SEC summons exchange chiefs in wake of Dow plunge

10 May 2010  |  6446 views  |  0 comments
Computer-based trading under scrutiny in Dow freefall

Computer-based trading under scrutiny in Dow freefall

07 May 2010  |  12062 views  |  1 comments
SEC to introduce large trader reporting system

SEC to introduce large trader reporting system

14 April 2010  |  7582 views  |  0 comments
SEC to build IT Forensics Lab

SEC to build IT Forensics Lab

18 March 2010  |  6485 views  |  0 comments
Finra issues social networking guidance

Finra issues social networking guidance

26 January 2010  |  10960 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.com Register now

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
16898 views comments | 20 tweets | 34 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
14228 views comments | 22 tweets | 30 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10460 views comments | 12 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
10108 views comments | 13 tweets | 10 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job