SEC plans to beef up high-speed trading regulations

Reg SCI stands for “systems compliance and integrity,” and would require participants to test and study their systems for detecting problems on exchanges and to notify the regulator of any issues.

At a recent SEC Speaks conference, Walter said there is no timeline for issuing the rules, but the agency would seek comments from the industry before they become final.

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The measures are part of a broader effort to protect exchanges from disruptions and errors, which plagued the system last year. In April, the SEC will roll out two other “circuit breaker”-type mechanisms, aimed to improve and build upon the ones implemented after the 2010 “flash crash,” which caused a sudden and short-lived 1,000-point drop in the Dow Jones Industrial Average.