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Monday, May 10, 2010

SEC: Exchanges agree on "structural framework" to strengthen circuit breakers

by Calculated Risk on 5/10/2010 02:16:00 PM

From the SEC: Statement on Meeting With Exchanges

"This morning, SEC Chairman Mary Schapiro had a constructive meeting with the leaders of six exchanges — the New York Stock Exchange, NASDAQ, BATS, Direct Edge, ISE and CBOE — and the Financial Industry Regulatory Authority to discuss the causes of Thursday's market events, the potential contributing factors, and possible market reforms.

"As a first step, the parties agreed on a structural framework, to be refined over the next day, for strengthening circuit breakers and handling erroneous trades."
Why not use technology to slow down price changes on individual stocks? It is amazing that we still don't have an explanation for the weird price changes last Thursday.