“Flash Crash” Report Released

October 2, 2010

The US Securities and Exchange Commission and the Commodity Futures Trading Commission yesterday issued their joint report [PDF, 104 pp.] on the market events — the so-called “Flash Crash” — of May 6.  In a joint statement, SEC Chairman Mary Schapiro and CFTC Chairman Gary Gensler said:

We appreciate the incredible effort of all the professionals at both agencies who have worked tirelessly, scouring the data, interviewing market participants and reconstructing the events of May 6th. This report identifies what happened and reaffirms the importance of a number of the actions we have taken since that day. We now must consider what other investor-focused measures are needed to ensure that our markets are fair, efficient and resilient, now and for years to come.

This report is a follow-up to the Preliminary Report [PDF] issued on May 18 of this year; that report is still useful as a source of background information.

I have not yet had a chance to read the report, but it will be interesting to see its conclusions.

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