SEC Wants 'Circuit Breaker' For Stock Volatility

Law360, New York (May 18, 2010, 7:42 PM EDT) -- The U.S. Securities and Exchange Commission on Tuesday proposed a “circuit breaker” that would briefly halt trading across all U.S. exchanges on stocks that experience a rapid change, the same day federal regulators released preliminary findings on the causes of the market's stunning May 6 collapse.

Under the proposed rule, trading in any stock that rises or falls 10 percent or more within a five-minute period would be stopped across all U.S. equity markets. The SEC said that the pause would allow a reasonable market price...
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