Is that true that the SEC is planning on implementing 4% halts as well. if a stock goes lower than 4% they halt trading?
Funny that should happen today. I was looking through the sec press releases yesterday and read this. Last week, the SEC approved rules that require the exchanges and FINRA to pause trading in certain individual stocks if the price moves 10 percent or more in a five-minute period. Under the rules, trading in a stock will pause across U.S. equity markets for a five-minute period in the event that the stock experiences a 10 percent change in price over the preceding five minutes. http://www.sec.gov/news/press/2010/2010-104.htm
Citigroup shares were halted at 1:03 p.m. EDT on the New York Stock Exchange Tuesday after a trade of $3.3174, or 12.7 percent below the previous trade of $3.80 crossed the tape. The stock drop triggered a new circuit breaker that the exchange adopted following the May 'flash crash' in which markets plunged out of control, the NYSE said. Citigroup's [C 3.79 -0.21 (-5.25%) ] shares were halted for 5 minutes and reopened at $3.80, down 5 percent for the day. The shares last traded down 5.5 percent at $3.78. The stock specific circuit breaker, adopted earlier this month by all U.S. exchanges, halts S&P 500 stocks that move more than 10 percent within a 5-minute period. ------------------------------- This has potential to be a giant clusterfuck. We need a few stock to drop the last 20 minutes before the market close then we can shut down early.