On December 29, 2015, the staff of the Securities and Exchange Commission’s Office of Analytics and Research Division of Trading and Markets published a research note (Research Note) on the unusual price volatility that the US equity markets and equity-related futures markets experienced on August 24, 2015. The Research Note assesses US equity markets under stressed conditions, including the lack of a uniform approach among exchanges and how exchange-traded products, such as exchange-traded funds, are affected by volatility, and provides a useful opportunity to evaluate the practical operation of several regulatory initiatives implemented in recent years by the SEC and self-regulatory organizations to address transitory price volatility.
To see the Research Note, click here.