Biggest Stock Exchanges Propose Circuit-Breaker Trial
So, according to Bloomberg, there is a process in place that will test "circuit-breakers" that will shut down sales of individual stocks if they fall 10% or more in a short period of time.
My question is, why not employ them if an individual stock goes UP 10% or more during that same given time period. We've gotten to the point where everything is geared toward preventing huge declines.
FYI Wall Street....huge gains aren't any better or more natural than losses. Let the damn markets dictate which direction they go naturally or employ equal measures on the upside as well as the downside.
After all, Panic is no more unhealthy than irrational exhuberance.
"The circuit breakers would be triggered in all markets when individual stocks in the Standard & Poor’s 500 Index moves 10 percent over five minutes, said the people, who asked not to be identified because the plans aren’t public. The test would begin June 7, under the plan being sent to the U.S. Securities and Exchange Commission.
Regulators are examining ways to slow down trading during investor panics after the market plunge on May 6 showed how conflicting rules across as many as 50 different U.S. equity venues may worsen selloffs. The SEC is scheduled to release a preliminary report today on the crash, which sent the Dow Jones Industrial Average down almost 1,000 points and erased about $1 trillion in stock value before losses were pared.
Executives from NYSE Euronext and Nasdaq OMX Group Inc. said in congressional testimony last week they support temporary halts for individual stocks when they fall 10 percent or more over preset time periods."
Biggest Exchanges Propose Circuit-Breaker Trial for Next Month - Bloomberg.com
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