Flash Crash: Proposal for Regulation

Jason Kirsch Miami University Farmer School of Business Jason Kirsch Miami University Farmer School of Business Bloomberg Research Journal ascorbic acid F Street, NE Washington, DC 20549 Bloomberg Research Journal 100 F Street, NE Washington, DC 20549 December 2010 December 2010 ____________________________________________________________ _________________ Proposal for Reform: Rules and Regulations to nurture electronic exchanges from experiencing technical failures similar to those occurring on whitethorn 6, 2010. Proposal for Reform: Rules and Regulations to protect electronic exchanges from experiencing technical failures similar to those occurring on May 6, 2010. ------------------------------------------------- ABSTRACT This report evaluates the May 6, 2010 flash crash and details preventative actions that should be considered immediately. march on study into the matter targets advanced frequency computerized trading programs as the main culprit. The underlying assumption of my proposal is that greater keep in line of market prices can be attained by transferring mogul from computers to humans.

Holding this assumption, the report pitches six rejuvenates that should be administered immediately. Each proposed reform has been developed to meet specific criteria in that the alteration must provide clear benefits that must include enhanced transp arntness while not hurting liquidity. The transfer of power from high frequency trading systems to human traders will deport toward a shift from unidentifiable back end costs to slightly higher front end costs. Further analysis lead toward six major preventative measures that meet the necessary criteria. They are as follows. 1. Adding a three second pause forward trade execution would ban the process of quote salad dressing and allow more transparent price quotes for securities. 2. Installing forget me drug breaker systems on major and private... If you want to get a full essay, order it on our website: Orderessay

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