A former Wall Street trader plans to tell a congressional panel investigating computerized trading that the stock market is in a "crisis."
"U.S. equity markets are in dire straits," David Lauer, now a consultant with the advocacy group Better Markets Inc., said in his prepared testimony. "We are truly in a crisis. Over the past three decades a technological revolution has swept over Wall Street."
A Senate banking subcomittee holds a hearing Thursday on how regulations might rein in lightning-fast trading that precipitated the flash crash of 2010.
Trading technology on Wall Street has emerged as a major issue this year with high-profile technical glitches that marred Facebook's initial public offering and nearly felled Knight Capital Group, a major brokerage.