BATS suffered a trading glitch late last week that sparked concerns about electronic trading but also highlighted how circuit breakers, which regulators introduced after the May 2010 "flash crash," were able to contain the potential fallout. BATS credited the safety mechanism from the Securities and Exchange Commission, saying the situation proved "recent improvements in the U.S. equity market structure are working as intended."
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The Bank for International Settlements (BIS) issued a working paper that highlights some of the unique challenges to global systemic risk measurement with an eye toward identifying those high-priority areas where enhancements to data are most needed. The paper notes that while currently available data can be used more effectively, supervisors and other agencies need more and better data to construct even rudimentary measures of risks in the international financial system. Similarly, market participants need better information on aggregate positions and linkages to appropriately monitor and price risks. It adds that ongoing initiatives, such as the G20 Data Gaps Initiative and enhancements to the BIS international banking statistics, will help close data gaps.