IOSCO says still no clue what caused U.S. market plunge

MOSCOW (BestGrowthStock) – Global security exchanges regulatory body IOSCO still has no clear idea of what led to the stunning U.S. market plunge on May 6 and could not yet provide advice to its members, a senior executive said on Friday.

“I think we are still trying to find out what had happened,” said Greg Tanzer, secretary general of the International Organization of Securities Commissions (IOSCO), which groups market regulators from over 100 countries and is a Financial Stability Board (FSB) member.

The Dow Jones Industrial Average briefly went into a near 1,000-point tailspin earlier this month while Nasdaq and other stock markets canceled trades in about 300 stocks, rattling investors worldwide.

“Until we know exactly what happened we cannot say what needs to be tightened up,” Tanzer told Reuters Insider television. He added U.S. regulators were carrying out a detailed enquiry into the matter.

“We will know more soon … Obviously these sorts of issues cause a bit of a concern for the market but we are hopeful we can find out what the core issues were,” Tanzer said.

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(Reporting by Kyril Sukhotski; Writing by Gleb Bryanski; Editing by Dmitry Sergeyev and David Holmes)

IOSCO says still no clue what caused U.S. market plunge