Markey to Propose Letting SEC Halt Program Trading
WASHINGTON -- A move to grant the Securities and Exchange Commission authority to halt program trading is gaining steam in Washington.</br></br>Rep. Edward Markey (D., Mass.), chairman of the House finance and telecommunications subcommittee, said he plans on Tuesday to propose an amendment to the pending market-reform bill that would give the SEC that power.</br></br>Aides from the House subcommittee are working with SEC and Treasury Department staffers to formulate an exact proposal that all three sides can accept. The amendment wouldn't specify when program trading would be curbed, but it would allow the SEC to set guidelines. Details of the legislation are likely to be worked out over the weekend. Rep. Markey apparently doesn't feel that he can push the amendment through without support from the two agencies.</br></br>Meanwhile, SEC Chairman Richard Breeden has agreed to accept a provision in the Senate version of the market-reform bill that would allow the agency to close the stock market in emergencies, Senate aides said. Mr. Breeden had opposed the measure, which was proposed by his predecessor, David Ruder. But Mr. Breeden now has indicated he would accept the proposal if it is modified to require that the president approve any market halt sought by the SEC chairman. Currently, only the president has the power to close the market.</br></br>The Senate Banking Committee is likely to take up the bill again next week.