The Securities and Exchange Commission (SEC) is examining ways of regulating US stock exchanges to prevent a repeat performance of the dramatic drop, which saw the Dow Jones Industrial Average fall by almost 1,000 points in less than 30 minutes on May 6.
The root cause of the fall has yet to be established, and the regulator is scrabbling to put some form of system in order to maintain an orderly market in the future.
Creating a circuit breaker was understood to be the subject of yesterday's meeting in Washington of Mary Schapiro, SEC chairman, and the heads of the major US exchanges, including the New York Stock Exchange and the Nasdaq. The heads of electronic exchanges BATS Exchange and Direct Edge also attended. (more)
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