17
Jul
Would ETF Circuit Breakers Do Harm?
Filed Under (Emerging Trends, Regulation) by admin on 17-07-2010
Worries about unintended regulatory consequences are coursing through the trading community as the day fast approaches, perhaps as early as next week, when the Securities and Exchange Commission implements new rules on ETF trading.
The rules, which amount to an attempt to prevent a repeat of the “flash crash” on May 6, would expand the SEC’s pilot stock-by-stock circuit breaker program from its current scope covering stocks on the S&P 500 Index to include 344 ETFs. Under the program, trade is halted in a stock that moves more than 10 percent in five minutes. Source
