SEC seeks comment on industry plan to make circuit-breaker program permanent

7 January 2019 9:06am
The national securities exchanges proposed making permanent a five-year pilot program of circuit-breakers to pause trading during unusual stock market swings.

“The plan has proved to be a valuable tool in dampening and preventing extreme price volatility,” said the filing by the exchanges and the Financial Industry Regulatory Authority. “Operation of the plan on a permanent basis would provide market participants with greater assurance regarding the ongoing operation of the plan".

The proposal, issued recently for public comment by the US Securities and Exchange Commission, also would narrow price bands in effect at the beginning and end of the trading day. These bumpers currently allow more volatility than permitted during the rest of the day.