SEC, CFTC have not found cause of May 6 crash: report

WASHINGTON (BestGrowthStock) – Regulators said in a preliminary report released on Tuesday they have not yet determined what caused the May 6 market crash and much more work needs to be done before they can reach a definitive conclusion.

The Securities and Exchange Commission and the Commodity Futures Trading Commission said in a report that no one factor was responsible for the unexplained “flash crash” on May 6 that drove the Dow Jones industrial average down some 700 points within minutes.

The agencies said they are focusing on six hypotheses, including a severe mismatch in liquidity and the use of “stub quotes.” They also are looking at a possible linkage between the decline in prices of stock index products such as index ETFs and the e-mini S&P 500 futures.

Regulators have looked at whether disparate trading rules among various exchanges exacerbated market liquidity-report.

Stock Market Report

(Reporting by Christopher Doering and Rachelle Younglai)

SEC, CFTC have not found cause of May 6 crash: report