Regulators propose changes to circuit breakers

09/28/2011 | Wall Street Journal, The

The Securities and Exchange Commission proposed changes to the circuit breaker system for suspending stock trading in the event of a large market plunge. The SEC also is looking into linking circuit breakers to the Standard & Poor's 500-stock index, instead of the Dow Jones industrial average, in response to suggestions from exchanges. "We think that the S&P [500] is more reflective of the marketplace than the Dow, in order to prevent another 'flash crash' from happening, and to provide additional safeguards against panic volatility," said Eric Noll, executive vice president of transaction services at Nasdaq OMX Group.

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