UPDATE 1-NYSE expects all U.S. stocks to have circuit breakers

* Circuit breakers expected to apply to all stocks by yr-end

* Mechanism to be aligned with liquidity of single stocks

* China seen allowing foreign listings as soon as this year
(Adds details, comments)

By Samuel Shen and Jason Subler

SHANGHAI, May 20 (BestGrowthStock) – All U.S. stocks (Read more about the stock market today. ) will probably
be subject to so-called circuit breakers by the end of this
year, Duncan Niederauer, chief executive officer of stock
exchange operator NYSE Euronext (NYX.N: )(NYX.PA: ), said on
Thursday.

The circuit breakers, a mechanism to halt trading in a stock
for five minutes if it falls more than 10 percent within five
minutes, will initially apply to stocks in the Standard & Poor’s
500 index (.SPX: ) under a proposal by the Securities and Exchange
Commission as regulators try to avoid a repeat of the mysterious
May 6 market slide that quickly spiralled out of control.

“They need to be applied to all the markets, not just some
of the markets,” Niederauer said, suggesting the circuit
breakers also apply to exchange-traded funds, something the SEC
has said may happen later.

“Our expectation is that they will be more aligned with the
underlying liquidity of the individual securities, probably by
the end of the year, which will be coincidental with some other
changes the SEC is contemplating for revaluating the market
structure of the United States on a more comprehensive basis.”

For example, some stocks need to fall 10 percent to trigger
the circuit breaker mechanism while some others only need to
fall 5 percent or 2 percent, he said.

Speaking in Shanghai, from where the New York Stock Exchange
will be remotely opened on Thursday, Niederauer also said he
expected China to allow foreign companies to list on its stock
markets by the end of this year or early next year.

“A number of multinational companies listed on our exchange
… are expressing more and more interest in listing on the
international board in Shanghai,” Niederauer said.

NYSE Euronext’s board has discussed a potential Shanghai
listing on several occasions, and “we’re still interested and
very focused on this initiative,” he said.

China plans to allow domestic listings of overseas firms as
part of efforts to deregulate its capital markets.

Chief Operating Officer Larry Leibowitz told Reuters in
March that NYSE Euronext hoped to be one of the first foreign
companies to list on the Shanghai Stock Exchange, but the
process has been slow.

NYSE Euronext, created in 2007 after the combination of NYSE
Group and Euronext N.V., is the world’s most liquid equities
exchange group and home to some of the world’s biggest
companies.

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($1=6.83 Yuan)
(Editing by Jacqueline Wong)

UPDATE 1-NYSE expects all U.S. stocks (Read more about the stock market today. ) to have circuit breakers