Streams

SEC Proposes New Stock-Trading 'Circuit Breaker'

Tuesday, May 18, 2010

After the near 1,000 point drop of the Dow Jones earlier this month, the Securities and Exchange Commission has announced a plan for an across-the-board "circuit breaker."

The new proposal would pause trading for all U.S. stock markets for five minutes when a specific stock rises or falls more than 10 percent in a five-minute period. While trading safeguards currently exist, regulators increasingly believe different rules at different exchanges helped cause the drop on May 6.

The uniform rules could prevent such wild market swings. The new rule is still subject to final approval and would be in effect as a pilot program until early December.

More in:

News, weather, Radiolab, Brian Lehrer and more.
Get the best of WNYC in your inbox, every morning.

Leave a Comment

Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.

Sponsored

Latest Newscast

 

 

Support

WNYC is supported by the Charles H. Revson Foundation: Because a great city needs an informed and engaged public

Feeds

Supported by