Verbatim: SEC Roundtable Discusses ‘Kill Switch’ to Cut Trading Errors
Exchange and investment professionals discussed the use of “kill switches” – automated switches that would turn off trading at securities firms when their volume exceeded preset maximums – during a roundtable this week hosted by the U.S. Securities and Exchange Commission. Regulators are under pressure to prevent “kill switch” computer and software malfunctions from harming markets. Roundtable participants generally supported the concept of a “kill switch,” though most raised concerns that it could crimp legitimate trading activity. The following are quotes from the roundtable discussion.