Intercontinental Exchange Group's NYSE Euronext unit has filed a plan with regulators to offer firms that trade on the New York Stock Exchange a "kill switch" that could cut off trading if preset levels were breached.
Risk controls have been a major focus for the securities industry in the wake of high-profile snafus like the August 2012 glitch at Knight Capital Group, now a part of KCG Holdings, that sent a flood of errant orders to the NYSE, nearly sank the firm and led to its takeover by rival Getco. Knight was one of the biggest executors of US trades.
An industry round table convened by the US Securities and Exchange Commission (SEC) in October 2012 focused heavily on the idea of exchanges having kill switches to contain high-speed trading errors and give investors peace of mind.
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