• Comment Deadline Set for Circuit Breaker Rule Proposals
  • June 7, 2010 | Authors: Robert A. Boresta; Eric L. Cohen; Jeffrey H. Elkin; Edward J. Johnsen; Marvin J. Miller
  • Law Firms: Winston & Strawn LLP - Chicago Office ; Winston & Strawn LLP - New York Office ; Winston & Strawn LLP - Chicago Office ; Winston & Strawn LLP - New York Office
  • On Friday, May 21st, we issued a briefing that discussed the proposals by the various national securities exchanges and FINRA to adopt uniform “circuit breaker” rules designed to halt trading in S&P 500 stocks that experience a rapid price movement. Generally, trading in a covered stock will pause across U.S. equity markets for five minutes if the stock experiences a 10 percent change in its price over the preceding five minutes. This will enable the markets to attract new trading interest in the stock, establish a reasonable market price for it, and resume trading in a fair and orderly manner. The rules will be effective on a pilot basis through December 10, 2010.