• SEC Approves Expansion of Stock-by-Stock Circuit Breaker Program and New Rules for Breaking Erroneous Trades
  • September 20, 2010 | Authors: Robert A. Boresta; Jeffrey H. Elkin; Edward J. Johnsen; Marvin J. Miller; David A. Sakowitz
  • Law Firms: Winston & Strawn LLP - Chicago Office ; Winston & Strawn LLP - New York Office ; Winston & Strawn LLP - Chicago Office ; Winston & Strawn LLP - New York Office
  • After extending the period for taking action several times, the Securities and Exchange Commission (the “SEC”) has approved proposals by each of the national securities exchanges and the Financial Industry Regulatory Authority (“FINRA”) (collectively, the “self-regulatory organizations” or “SROs”) to expand the coverage of the SROs’ uniform market-wide standards for pausing trades in certain securities that experience rapid price movements. As we discussed in earlier briefings, these “circuit breaker” rules were a response to the unprecedented market volatility on the afternoon of Thursday, May 6, 2010, often referred to as the “flash crash.”