Bond exchanges don't need to put in place automated limits on price swings, which are aimed at shares and derivatives traders, the global body of securities regulators said today.
The International Organization of Securities Commissions made the clarification when issuing a set of guidelines for stock and futures exchanges today.
Iosco, the Madrid-based body comprising most of the world’s securities authorities, called for markets to deploy the dampeners after a series of market events going back to the May 2010 “flash crash.” In that incident, an algorithm for generating futures orders went awry, wiping almost $1 trillion off the value of US stocks before a rebound minutes later.
Bond exchanges win carveout from global measure to curb market volatility
1 August 2018 8:52pm