[bcoates]

"I also think that there is a direct connection between events like the Flash Crash and things like Nasdaq's mishandling of the Facebook IPO, which, again, had real costs in terms of time and money. Both emerge, I would argue, from a similar flavor of complexity."

I think this was the point I was missing. So the goal of corrective regulation shouldn't be just to damp wild "flash crash" style transients per se, but to deal with unique anomalous events that commonly arise from the tightly coupled complexity of the market but have individually unpredictable causes and consequences?