[StBernard] Kanjorski Comments on CFTC-SEC Staff Report on Stock Market Volatility

[Westley Annis]

KANJORSKI COMMENTS ON CFTC-SEC STAFF REPORT 

ON STOCK MARKET VOLATILITY

 

Capital Markets Subcommittee Chairman Convened 

First Congressional Hearing to Examine May 6 "Flash Crash"

 

WASHINGTON - Congressman Paul E. Kanjorski (D-PA), the Chairman of the House
Financial Services Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises, today joined in releasing and commented on
the report of the staffs of the Commodity Futures Trading Commission (CFTC)
and the Securities and Exchange Commission (SEC) to the Joint CFTC-SEC
Advisory Committee on Emerging Regulatory Issues regarding the findings of
the events of May 6, 2010, when major equities indices, individual stocks,
and exchange traded funds rapidly fell and quickly recovered within a matter
of minutes.  Chairman Kanjorski convened the first congressional hearing on
the "flash crash" on May 11, 2010.

 

"The SEC and CFTC report confirms that faster markets do not always lead to
better markets," said Chairman Kanjorski.  "While automated, high-frequency
trading may provide our markets with some benefits, it can also carry the
potential for serious harm and market mischief.  Extreme volatility of the
kind we experienced on May 6 could happen again, as demonstrated by the
volatility in individual stocks since then.  To limit recurrences of that
roller-coaster day and to bolster individual investor confidence, our
regulators must expeditiously review and revise the rules governing market
structure.  Congress must also conduct oversight of these matters and, if
necessary, put in place new rules of the road to ensure the fair, orderly
and efficient functioning of the U.S. capital markets.  The CFTC-SEC staff
report will greatly assist in working toward these important policy goals."

 

Click here
<http://financialservices.house.gov/FinancialSvcsDemMedia/file/key_issues/St
affFindingsregardingtheEventsofMay6.pdf>  to view the full SEC-CFTC report.

 

###