How the SEC Is Responding to the Nasdaq Disruption

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Aug. 22 (Bloomberg) -- Bloomberg's Peter Cook, Adam Johnson, Stephanie Ruhle, Betty Liu, Julie Hyman and Matt Miller discuss the Nasdaq trading halt on Bloomberg Television's "Street Smart." Wharton's Jeremy Siegel also comments. (Source: Bloomberg)

There certainly does.

Peter cook.

We have been tried to figure out what is happening in new york.

Certainly the response, at least until now, has been curiously absent.

What are you hearing?

I am hearing there are other people tried to figure out what is going on, including the president of the united states.

We just got word the president was briefed on what happened here yen obviously it has risen to that level in washington.

Of course also, the sec has been telling us all day they have been monitoring the situation.

Given a sense of what is happening, the concern is the whole in trading and starting to restart trading.

Conference calls that happened between not only the sec regulators but all of the exchanges.

The conference call has been basically ongoing throughout the course of the entire disruption.

There will be tough questions asked about how this happened and what the cause was.

There have been a lot of questions already about what could have triggered this malfunction.

Why did not restart sooner?

One thing i am hearing from folks that the sec come of reminder , back in march the sec proposed new regulations specifically to deal with technology issues.

Let me read from the press release when it first was put out there, unanimously proposed.

This would replace the current voluntary compliance program to better insulate the markets from former abilities from systems technology, basically deals directly with some of the issues that may be in place here.

This is a proposal that went out for comment.

It was extended, so it has not been finalized.

This proposal certainly getting a lot more attention but the sec of the -- at the sec in light of what happened today.

Is there a deadline for comments?

The comment time just ended.

It was extended to allow market participants were time to weigh in.

My understanding is it closed earlier this month.

The comments are in and they have to decide on final rule making a vote on that.

We do not have a specific time line, but you can imagine this incident will speed the time line up, or at least a conversation.

Peter cook, think you as always.

The sec goes out to members of the trading community and says we know we need to improve security, we want your comments back come and get a real problem.

No comment from the sec today.

It is shocking, but i think it has to do with the fact that no one wants to say anything until they really know what has happened.

Take two days ago.

I heard from goldman sachs that the loss was much smaller than 2 million.

We heard it was maybe hundreds of millions in losses.

I spoke to three different executives, why don't you just tell me the number?

No one says anything until they are absolutely sure.

If anyone comes out and make a public statement and they are wrong, they will get crucified.

In their defense, they are thinking i do not have all of the facts yet.

Of it has only been three hours.

The sec will not put out an official statement.

They could have said we are in touch with the authorities, monitoring the situation, we will attempt to help the nasdaq reopen exchanges.

What would that have done?

It lets people know the sec is aware of what is happening.

It restores confidence.

With something along these lines, a statement saying we are on it, does that make a difference?

It could, but it is not in their blood.

They do wait until they know what is going to happen to try to figure it out.

This is a very important proposal by the sec.

This incident, i think, highlights that.

It is not in their blood to come in and calm the waters and say we are also looking at.

They step back, try to learn and then try to get proposals to prevent it from happening again.

Very deliberate organization.

Just to be clear, they put out a loosely-worded statement earlier in the day.

There were not detailed in it, but they have their eye on the ball.

This text has been automatically generated. It may not be 100% accurate.

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