IOSCO still has no clear idea what caused the stunning US market plunge on May 6, a senior executive from the group, which combines most of the world's securities regulators, said on Friday.
"I think we are still trying to find out what had happened," said Greg Tanzer, secretary general of the International Organisation of Securities Commissions (IOSCO). The body groups market regulators from over 100 countries and is a Financial Stability Board (FSB) member.
The Dow Jones Industrial Average briefly went into a near 1,000-point tailspin earlier this month while Nasdaq and other stock markets cancelled trades in about 300 stocks, rattling investors world-wide.
"Until we know exactly what happened we cannot say what needs to be tightened up," Tanzer told Reuters Insider television.
"We will know more soon Obviously these sorts of issues cause a bit of a concern for the market but we are hopeful we can find out what the core issues were," Tanzer said.
The incident will encourage regulators to look more closely at core infrastructure issues, "more technical and perhaps boring rules" such as the rules of conduct, infrastructure of clearing and settlement and trading infrastructure, he said.
Comments
Comments are closed.