Regulators and exchange operators will focus on the nation’s ageing stock quote system when they meet on Thursday to address system outages that have shaken confidence in the markets.
The New York Post reports that Nasdaq OMX, NYSE Euronext and other exchange operators are set to meet with Securities and Exchange chief Mary Jo White to hash out a plan for dealing with a string of glitches and trading meltdowns.
The meeting was sparked by Nasdaq’s epic three-hour outage on 22nd August, when the system that consolidates the pricing data of publicly traded companies at other exchanges experienced a major glitch.
Backing up and upgrading the system, known as the securities information processor, or SIP, will be a main topic of discussion, sources said. The SIP system was engineered a decade ago and exchange bosses likely will float upgrading it, among other ideas.
Sources said one way is to standardize the SIP systems across more than a dozen exchanges so that they share the same capacity limits — how much information per second they can process — and better communicate with each other.
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