LONDON - Stock exchanges and other trading platforms should draw up and make public plans for dealing with outages to provide greater predictability for customers, global securities watchdog IOSCO said on Wednesday.
"Where trading venues have effective playbooks and outage plans in place, this provides market participants with certainty about the steps that trading venues will take in the event of an outage," IOSCO, which is comprised of regulators from across the world, said in a report.The report highlighted "the need for improved preparedness and management of market outages to ensure market resilience and investor confidence".
"Where a closing auction cannot be run at the scheduled time, trading venues may need to consider postponing the closing auction before cancelling it," IOSCO said. Traders who scooped up Warren Buffett’s Berkshire Hathaway shares at a massive $620,000 discount during glitch will have their deals canceled by the NYSE