SEC Wants Exchange-Wide Trade Audit System

Law360, New York (May 27, 2010, 11:04 AM EDT) -- Citing the difficulty regulators have had reconstructing the May 6 stock market whipsaw, the U.S. Securities and Exchange Commission has approved a proposal requiring stock exchanges to create a consolidated audit system for stock trades.

"If adopted, this consolidated audit trail would, for the first time ever, allow the SEC and other market regulators to track trade data across multiple markets, products and participants in real time," SEC Chairwoman Mary L. Schapiro said Wednesday, introducing the proposal. "It would allow us to rapidly reconstruct trading activity...
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