SEC proposes rules to prevent repeat of "flash crash"

The Securities and Exchange Commission has proposed rules that would temporarily suspend trading in a stock when it surges or plunges more than 10% in a five-minute period. The proposal is a response to the May 6 market plunge, although officials are still trying to determine the cause of the "flash crash." "We continue to believe that the market disruption of May 6 was exacerbated by disparate trading rules and conventions across the exchanges," SEC Chairman Mary Schapiro said. "As such, I believe it is important that all the exchanges quickly reached consensus on a set of uniform circuit breakers that would be triggered when needed."

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