In her recent column for the New York Law Journal, Professor Roberta Karmel explores the causes of "flash-crashes" and how the SEC should regulate these situations of extreme market volatility. She explains that "flash-crashes"--when the market plummets drastically but bounces back in the span of one day--are likely due to high-frequency trading, direct electronic access, and dark pools. These trading practices further destabalize the U.S.'s already fragile economy, argues Professor Karmel, and regulatory action by Congress is needed. "Although the SEC and CFTC have been making great strides in cooperative regulatory efforts," she writes, "there is a continuing need to merge these agencies, another reform in which Congress has little interest."
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