The story of fake tweets on wounding of the U.S. President Barack Obama and explosions in the White House raised the issue of the rules revision in electronic trading. It is reported by Reuters with a reference to the U.S. Commodity Futures Trading Commission.
Recall that some Syrian group hacked the Twitter account of the Associated Press, reporting on attack on the White House and about wounding of the American President. The rebuttal was published a few minutes later but many media sources had a time to pick up and spread that news.
As a result of hacking on April 23 this year, U.S. stock market recorded a loss of about 1.5% of its market capitalization. In absolute terms, for companies listed in S&P 500 index it meant a fall of market value of around 136.5 billion dollars.
The exchange market participants put responsibility for that dramatic slump on automated systems for trading, which are followed the algorithms and began an emergency sale of the assets. Now it is proposed to revise the rules of automated trading in terms of maintenance’s speed of electronic trading operations.
Last year, the U.S. Commodity Futures Trading Commission has proposed a new concept of institutional trading scheme, which would preclude such emergency situations, but in practice its parameters have not been introduced.
"I think it's time to finalize the concept that we have been developing for quite some time." said Gary Gensler, the chairman of the Comission.
Despite the sharp downward trend on the background of false report, all quotes almost immediately returned to their original positions after the official denial of information.
It should be noted that any changes in the rules of electronic trading in the stock market may also have some impact on the currency market. The quality of such impact (positive or negative) will depend on the quality of proposed changes.