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.
A glitch at the New York Stock Exchange on Monday triggered massive swings in the shares of Berkshire Hathaway and Barrick Gold, and trading halts in dozens of other companies, before the problem was fixed. The report highlighted “the need for improved preparedness and management of market outages to ensure market resilience and investor confidence”.
Trading venues that run closing auctions that determine prices used in benchmarks should also spell out what happens after an outage.
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