SEC Proposes Tighter Rules To Target Market Swings

Law360, New York (September 27, 2011, 3:55 PM EDT) -- The U.S. Securities and Exchange Commission on Tuesday proposed changes to a 23-year-old set of market safeguards, which did not kick in during last year's so-called flash crash, to make them more responsive to volatile changes in the market.

The proposed rules narrow the threshold for market drops that automatically trigger a trading freeze to as little as 7 percent off the previous day's close. They are the latest step by regulators to target extreme swings in the market, like the 999-point drop in the bellwether...
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