SEC Moves To Dampen Volatility In Stock Market

Law360, New York (June 1, 2012, 4:15 PM EDT) -- In an effort to head off drastic stock market fluctuations, the U.S. Securities and Exchange Commission on Friday said that next year it will begin preventing trades in individual exchange-listed stocks from occurring outside of a specified price band and updating existing marketwide circuit breakers.

The two proposals were submitted by the national securities exchanges and the Financial Industry Regulatory Authority designed to address volatility in individual securities and the broader U.S. stock market.

The first initiative establishes a "limit up-limit down" mechanism that will replace...
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