Equity Pros Back SEC 'Kill Switch' For Trading Glitches

Law360, New York (October 2, 2012, 1:50 PM EDT) -- The U.S. Securities and Exchange Commission should consider instituting a "kill switch" that would shut off stock trading by specific firms in the event of a software error like the one that imperiled Knight Capital Group Inc. in August, a group of industry experts said Tuesday.

A panel of equity experts said at an SEC roundtable that the emergency measure could minimize damage from glitches caused by faulty trading algorithms. The proposal stems from Aug. 1, when a software hiccup at Knight Capital caused wild swings...
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