(Reuters) – U.S. regulators should stem the growing tide of anonymous stock-trading and consider charging high-frequency traders for their disproportionate amount of buy and sell orders, said a panel of experts advising how to avoid another "flash crash."
The panel’s 14 recommendations for U.S. securities and futures regulators contained some bold ideas that, taken together, would overhaul the high-speed electronic trading market.
The advisers on Friday told regulators that today’s markets can easily breed uncertainty among investors, and asked them to move urgently on the suggestions.
Yet many of the ideas called only for "consideration" or "further study" — potentially raising more questions as the first anniversary of the May 6 flash crash nears.
"The recommendations are a good first step … but from a practical standpoint of avoiding another (crash) in the future, it doesn’t go far enough. I don’t think it’s possible to prevent another one from happening," said Adam Sarhan, chief executive of Sarhan Capital in New York.
U.S. regulators were cautious about some of the boldest recommendations, including new fee structures to encourage liquidity and discourage high numbers of order cancellations.
Continue here: Flash crash panel calls for market overhaul | Reuters.
