Nasdaq Adopts Market Volatility Safeguard

Law360, New York (March 14, 2011, 10:47 PM EDT) -- The U.S. Securities and Exchange Commission approved a volatility-based trading pause proposed by Nasdaq Stock Market LLC that the exchange hopes will help moderate market volatility and prevent a repeat of the May 6 flash crash in the Dow Jones Industrial Average.

The regulator granted accelerated approval Friday to Nasdaq's proposed rule which will implement a "volatility guard" in 100 Nasdaq-listed securities for six months as part of a pilot program.

The volatility guard is triggered when a security's price exceeds a certain threshold, the SEC...
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