SEC Mulls New Safeguard Against Market Volatility

Law360, New York (April 5, 2011, 8:16 PM EDT) -- The U.S. Securities and Exchange Commission said Tuesday that the Financial Industry Regulatory Authority and others had suggested adopting a mechanism that would prevent wild market fluctuations by barring trades that fall outside of a continually updated price range.

The SEC said U.S. stock exchanges and FINRA had submitted a proposal to establish a so-called limit up/limit down mechanism to replace the existing "circuit breaker" approach put into place after the May 6 flash crash, which saw the Dow Jones Industrial Average plunge by 998 points....
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