Sept. 13, 2013
Thomas P. Gallagher
, Chairman and Chief Executive Officer of MIAX Options Exchange (MIAX), and
Barbara J. Comly
, Executive Vice President and General Counsel of MIAX, met yesterday with Securities and Exchange Commission Chair
Mary Jo White
, market regulators and other U.S. options and stock exchange executives to discuss industry reform and devise a plan to better manage technology problems following recent trading interruptions. Areas of reform that were discussed included: establishing action plans that address testing and disclosure protocols about systems changes for securities information processors (SIPs); identifying and assessing the robustness and resilience of infrastructure systems; establishing SIP plans to address how regulatory halts are communicated; reviewing current rules for breaking trades and re-opening an exchange after trading halts; and submitting rule amendments to provide for "kill switches" that halt trading during emergencies. U.S. options and stock exchanges now have 60 days to address these areas of reform.
According to a published report in the
New York Times
Friday, September 13, 2013
, Ms. White said in a statement following the meeting that she "stressed the need for all market participants to work collaboratively – together with the Commission – to strengthen critical market infrastructure and improve its resilience when technology falls short."
"The industry meeting hosted by the SEC was very productive and enabled participants to prospectively consider ways to improve the resiliency of the U.S. market systems, strengthen critical market infrastructure, and set minimum standards in areas such as single points of failure," said
Thomas P. Gallagher
, Chairman and Chief Executive Officer of MIAX. "MIAX fully supports this initiative by Chair White and her staff and their concerns over timeliness and clarity of communications during critical market interruptions."
Continued Gallagher, "Because of the critical role that exchanges play in the U.S. financial infrastructure, MIAX strives to create and maintain a culture of continuous self-assessment and evaluation and recognizes that it has a duty to help ensure the integrity and reliability of the markets for its participants. MIAX looks forward to collaborating with other exchanges and regulators to address the concerns raised by Chair White and her staff on Thursday, and playing a role in the industry's response to such concerns."