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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.