Key US equity players urge SEC adopt abnormal trading controls (Reuters)

Key players in the U.S. equity marketplace, including exchanges, brokerages and trading firms, called on U.S. regulators to set limits and track trading activity after a glitch caused Knight Capital Group to incur a $440 million loss this summer.

A core nucleus of entities involved in the transaction of U.S. securities, including a clearing house and a watchdog agency for brokerages, urged on Friday that the Securities and Exchange Commission develop controls to better detect abnormal trading behavior in real-time.

The so-called Industry Working Group of 16 brokerages and trading firms, along with five U.S. stock exchange operators and the Financial Industry Regulatory Authority, also urged the SEC to evaluate whether a longer-term consolidated control mechanism could be built at the Depository Trust & Clearing Corp.

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