Trader Talk

SEC Expands Circuit Breakers to Cover Russell 1000

As expected, the SEC has expanded the stock circuit breaker program to cover all stocks in the Russell 1000 Index and certain exchange-traded funds (ETFs).

They have also clarified rules for breaking erroneous trades. The breaking of these erroneous trades was a major problem during the Flash Crash; the SEC has sought the occurrence of these trades.

 

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