NEW YORK (

TheStreet

) -- The

Securities and Exchange Commission

is investigating computer system failures at electronic marketplaces including

Nasdaq

I:IXIC

to determine if internal controls are sufficient,

The Financial Times

reported, citing people familiar with the matter.

The SEC's market abuse unit is handling the investigation. The probe is part of a broader regulatory review of stock exchanges following last year's "flash crash," recent hacking attempts and trading glitches,

FT

reported.

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Regulators are concerned that exchanges may have let risk and internal controls weaken in a race to develop innovative trading platforms,

FT

said, citing a person familiar with the matter.

One area under scrutiny, according to the newspaper, is whether exchange operators are complying with SEC rules that require quote feeds to be delivered to all investors at the same time, the people said.

The SEC also is investigating whether the for-profit exchange operators are following their own rules and describing them accurately to the public,

FT

reported.

The SEC and Nasdaq declined to comment for the newspaper.

-- Written by Joseph Woelfel

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Joseph Woelfel

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