News, analysis and personal reflections on the markets & the financial sector

Friday, October 3, 2008

Markey calls on SEC to reinstate collar rule

Rep. Edward Markey, D-Mass., urged the Securities and Exchange Commission to reinstate the so-called "collar rule." The arbitrage rule has the downtick-uptick test and is designed to halt market volatility. "The SEC has the authority and responsibility to ensure that this volatility is not exacerbated dangerously by internal market mechanisms such as program trading which could push this situation into a free fall," said Markey, who was chairman of the House subcommittee on telecommunications and finance in the late 1980s, another period of market volatility.

more at http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080930/REG/809309979/1036

No comments: