Market Reform Act of 1990

Market Reform Act of 1990

Legislation in the United States that for the first time permitted the SEC to restrict certain kinds of trading, notably program trading, during "periods of extraordinary volatility." The Act also provided for more efficient reporting measures for securities trading and authorized the SEC to create a national system for the settlement of transactions. It was passed in response to the S&L crisis of the late 1980s.
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Market Reform Act of 1990

Federal legislation that allows the SEC to influence trading practices such as program trading during periods of extraordinary market volatility. This legislation was enacted in response to the October 1987 market decline.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.