http://www.sec.gov/news/press/2010/2010-80.htm
by The Associated Press - June 10, 2010
Federal regulators have put in place new rules aimed at preventing a repeat of last month's harrowing "flash crash" in the stock market.
Members of the Securities and Exchange Commission on Thursday approved the rules, which call for U.S. stock exchanges to briefly halt trading of some stocks that have big swings.
The exchanges will start putting the trading breaks into effect as early as Friday for six months.
The plan for the "circuit breakers" was worked out by the SEC and the major exchanges following the May 6 market plunge that saw the Dow Jones industrials lose nearly 1,000 points in less than a half-hour.
"Under the proposed rules, which are subject to Commission approval following the completion of the comment period, trading in a stock would pause across U.S. equity markets for a five-minute period in the event that the stock experiences a 10 percent change in price over the preceding five minutes. The pause would give the markets the opportunity to attract new trading interest in an affected stock, establish a reasonable market price, and resume trading in a fair and orderly fashion. Initially, these new rules would be in effect on a pilot basis through Dec. 10, 2010."
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