10 YEARS AFTER - REGULATORY DEVELOPMENTS IN THE SECURITIES MARKETS SINCE THE 1987 MARKET BREAK

It has been approximately 10 years since uncertainty, panic, and confu sion wrested control from the forces of supply and demand and sent the U.S. securities markers plummeting. After much review, discussion, an d analysis, it is widely agreed that certain aspects of the financial system contributed to that event. Since October 1987, many reforms hav e been implemented to address the weaknesses in the system highlighted by the 1987 market break. They include, among others, the implementat ion of circuit breakers, the approval of the Order Execution Rules, th e reduction of the standard settlement time frame to T + 3, the conver sion to a same-day funds settlement system, the initiation of programs that regularly test the capacity of the market's automated systems, t he augmentation of firms' capital levels, and improved coordination wi th regulators in other countries. The market has improved significantl y because these changes have reduced or eliminated risk by improving c oordination, increasing efficiency, sharing information, or ensuring s ufficient system or capital capacity exists. Nevertheless, every marke t event is unique. Therefore, it remains important to identify and add ress new issues before they become problems.