SEC Announces Filing of Proposed Limit Up-Limit Down Requirements


On April 5, the Securities and Exchange Commission announced that the national securities exchanges and the Financial Industry Regulatory Authority filed proposals to establish "limit up-limit down" requirements (Limit Rules) to address extraordinary market volatility in the U.S. equity markets. The Limit Rules would replace the existing single stock circuit breaker pilot program established in response to the market events of May 6, 2010.

The proposed Limit Rules would prevent trades in listed equity securities from occurring outside set price ranges (i.e., a certain percentage above and below the average price of a security over the preceding five minutes). The following percentage limits would apply...

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