(Bloomberg) — U.S. equity and options exchanges, facing a deadline from regulators to figure out how to make markets more reliable, said theyve developed a framework for preventing breakdowns and responding better to failures.
The exchanges have come to general agreement on certain recommendations and preliminary implementation timetables, according to a statement today, which didnt provide specifics. The companies said they will reveal more information in rule filings with the U.S. Securities and Exchange Commission.
The statement was a response to SEC Chairman Mary Jo Whites Sept. 12 demand that exchanges collaborate on fixing their infrastructure, made during a meeting with bourse officials in Washington. The exchanges said today that they found potential improvements for five broad areas, including the stock markets main data feeds, which came under scrutiny after Nasdaq OMX Group Inc.s system failed on Aug. 22.
The exchanges also developed recommendations to improve critical infrastructure items such as communication about trading halts and initial public offerings. They agreed to core principles for halting stock and options markets, established plans to reconcile procedures for canceling trades, and continued to develop a kill switch to stop markets.
Following the Sept. 12 meeting in Washington,NYSEEuronext Chief Executive Officer Duncan Niederauer said the exchanges had 60 days to get back to the SEC.
