US Markets Propose Stop-Trade Circuit Breaker When Stocks Dive


New York, May 19 (DPA): The major US equity markets want to try a new system that would temporarily halt trading in individual stocks that swing more than 10 percent in value, reports said Tuesday.

A six-month pilot programme is being proposed to regulators intended to guard against events like the May 6 "flash crash" that saw the Dow Jones Industrial Average suddenly plunge 1,000 points, or about 10 percent, the Wall Street Journal reported, citing people close to the matter.

An announcement by regulators could come later Tuesday.

The so-called circuit breakers would first affect only individual stocks, and then be expanded to marketwide safeguards. The proposal calls for the system to start sometime after June 7, media reports said.

Regulators are still trying to get to the bottom of what happened May 6.

 

 

  

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Title: US Markets Propose Stop-Trade Circuit Breaker When Stocks Dive



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