U.S. SEC Chair Calls For Stock Market Kill Switch

NEW YORK, NY – Designer Vera Wang and Coty CEO Michele Scannavini stand amongst a sea of traders at the New York Stock Exchange Coty goes public on the New York Stock Exchange on June 13, 2013 in New York City. Global beauty company Coty made its public debut today. (Photo by Jemal Countess/Getty Images)

By JG VIbes

On Thursday, Mary Jo White, the U.S. Securities and Exchange Commission Chair said that there will be a new series of financial regulations, including a stock market kill switch to shut down trading.

The regulations are apparently in response a software glitch that led to a three-hour lapse in trading on August 22nd.

Reuters reported that:

“White issued a statement discussing a series of reforms she hopes to see completed after meeting privately earlier this morning with the chief executives of the major exchanges, including Nasdaq OMX, New York Stock Exchange Operator NYSE Euronext, BATS Global Markets, Direct Edge and the Chicago Board Options Exchange.”

In theory, the stock market is a medium through which businesses can connect with investors, but because it is so heavily controlled by the government and banking system, it has become nothing more than a casino.  Regulatory agencies like the SEC, who are government entities closely tied to banking, actually make this problem a lot worse.

Mary Jo White said that this would just be one of many regulations that the SEC will be attempting to pass in the coming months.

Sources:

[1] U.S. SEC Chair calls for kill switch, other reforms for exchanges – Reuters

JG Vibes is an Intellihub.com investigative journalist, staff writer and editor. He is also the author of “Alchemy of the Modern Renaissance”, an 87 chapter e-book and is an artist with an established record label.