SEC Sets Rules For Breaking Erroneous Stock Trades

Law360, New York (October 5, 2009, 6:36 PM EDT) -- The U.S. Securities and Exchange Commission on Monday said it has approved new rules — to be used by major stock exchanges — for breaking stock trades that deviate so substantially from current market prices that they are considered “clearly erroneous.”

The agency says the new rules provide for a consistent standard across stock exchanges and reduce uncertainty about what happens to a trade depending on where it is executed.

“Adopting consistent standards across exchanges for breaking trades will strengthen the resiliency of our markets by...
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