SEC Adopts Circuit Breaker Rule For S&P 500 Stocks

Law360, New York (June 10, 2010, 4:26 PM EDT) -- The U.S. Securities and Exchange Commission said Thursday that stock exchanges and the Financial Industry Regulatory Authority will have to develop a circuit breaker mechanism for stocks in a bid to prevent a repeat of the wild stock market gyrations of May 6.

A rule adopted Thursday calls for trading in any stock within the Standard & Poor's 500 index that rises or falls 10 percent or more within a five-minute period to be stopped across all U.S. equity markets. The SEC said the pause would...
To view the full article, register now.