The market sell-off on Christmas Eve shouldn't be ignored by regulators, a former attorney for the Securities and Exchange Commission told CNBC on Thursday.
Teresa Goody, who worked as a lawyer in the Office of General Counsel at the SEC, said what happened on Christmas Eve was different from 2010's "Flash Crash" that saw the Dow plunge 1,000 points before it pared those losses. However, she said regulators can investigate based on issues in the market's structure.
"When you have these wide swings in the market — 400, 500, 600 points, 2 to 3 percent — I think that's a clear indication that that's some sort of a market structure issue," Goody said on "Power Lunch."
"The SEC has to investigate … [and] look into why there's this volatility, because it's not fair to everyday investors. It's not fair to all investors, really. It goes to the fair and efficient markets that we have."