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Launch of the US stock market surveillance system hit the stone
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Loading...The start of the long awaited trading monitoring system on the largest stock market in the world has gone wrong, as negotiations between regulators and stock exchanges are again deadlocked.
Starting on Wednesday, after years of planning, the Consolidated Audit Trail - CAT) has stalled after the Securities and Exchange Commission rejected last minute talks with stock exchanges and delayed its execution.
The long-planned surveillance tool is designed to provide detailed information about orders and deals for US stock and options markets - often market participants call it the Hubble Space Telescope System for Securities Markets.
Major US exchanges, including the New York Stock Exchange, Nasdaq and CBOE Global Markets, have demanded a one-year postponement of the first phase of reporting, relying on cyber security concerns.
In response, SEC chairman Jay Clayton urges US stock exchanges to "continue their efforts, work together and fulfill their responsibilities as quickly as possible."
Officials for NYSE, Nasdaq, CBOE, the Chicago Stock Exchange and IEX declined to comment.
The market surveillance system was offered after the flash crash in 2010, when stocks quickly and inexplicably collapsed.
Fears of hacker attacks have intensified since the recent hacking of Equifax, and the unrelated SEC reporting system complements investor fears.
"The latest serious security breaches, like a breakthrough in Equifax, highlighted the vulnerability of systems that have large volumes of sensitive financial data to hacking and other forms of attack," SEC said in a letter of delay. "Since the ability of outsiders to launch such attacks is dynamic and evolves, security measures taken to protect systems such as CAT must also evolve."
Source: Financial Times
Jr Trader Petar Milanov
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