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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.