Stock 'Circuit Breakers' Coming Tomorrow

Individual stock circuit breakers coming tomorrow (Friday).

Sources tell me the SEC will announce they have approved the circuit breakers that have been circulating for approval, and will begin a partial rollout tomorrow.

Remember what the circuit breaker does: when a stock in the S&P 500 drops 10 percent in a 5-minute period, there will be a five minute trading halt across all platforms.

The partial rollout means that only a few stocks will become subject to the circuit breakers tomorrow; the rest of the S&P 500 should come under the rule by the end of next week.

This is a pilot program that will last into December. ETFs are not included but likely will be in the future.

The NYSE was doing testing last weekend to make sure firms can receive and process the automatic messages that will be generated if the circuit breakers are tripped.

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Companies in the News:

Bank of America

BP

Goldman Sachs

General Electric*

Google

* General Electric is the parent of CNBC.

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