SEC meeting discusses need for trade-cancel rules

WASHINGTON/NEW YORK (BestGrowthStock) – The need for clear, predetermined rules for canceling “erroneous” trades was discussed at a meeting hosted by U.S. regulators in the wake of last week’s severe market drop, two sources familiar with the meeting said on Monday.

One source said the possibility of coordinating any new circuit breaker for stock markets with movement in futures markets was also raised.

The sources requested anonymity because the investigation into the mysterious plunge is ongoing.

The Securities and Exchange Commission summoned the heads of major U.S. exchanges and trading venues to the meeting in Washington on Monday morning and said afterward there was agreement new safeguards, including circuit breakers were needed to occasionally curb trading.

After the close of markets on Thursday, when the plunge took place, exchanges decided to cancel, or “bust,” all trades executed in a 20-minute timeframe that were greater than or less than 60 percent away from that stock’s last print.

Investment Research

(Reporting by Rachelle Younglai and Jonathan Spicer; editing by Andre Grenon)

SEC meeting discusses need for trade-cancel rules