Richard Ketchum, the chief executive of the Financial Industry Regulatory Authority, or FINRA, tells Reuters’ Joseph Giannone that he sees “no higher priority” than ensuring market integrity by working against insider trading and says safeguards against another “flash crash” will limit extreme volatility. We have a story about it at HedgeWorld.com.
“I think the steps that have been taken, with the help of the SEC and CFTC, provide a better environment with the existence of single stock circuit breakers, with identifying restrictions and a variety of things that really created too much risk before,” Ketchum says. “We’re not in a perfect place from a market standpoint. Electronic markets are different. We’re all going to have to learn how to regulate with them. But I think investors should feel much better about the risk of extreme volatility than they did a year ago.”