{"id":5260,"date":"2012-03-10T00:00:00","date_gmt":"2012-03-10T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/03\/look_out_for_rule_recommendati"},"modified":"2022-04-20T13:55:32","modified_gmt":"2022-04-20T18:55:32","slug":"look-out-for-rule-recommendati","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/look-out-for-rule-recommendati\/","title":{"rendered":"Look Out for Rule Recommendations on Consolidated Audit Trail, Market-Wide Circuit Breaker Changes, and Limit Up-Limit Down Mechanisms"},"content":{"rendered":"<p>Securities and Exchange Commission&#8217;s Division of Trading and Market Associate Director David Shillman reported that the staff is almost ready to recommend three market rules for adoption. He noted that the Commission would likely bundle recommendations dealing with consolidated audit trail, market-wide circuit breaker changes, and limit up-limit down mechanisms. Schillman made his comments at SEC Speaks, which was sponsored by the Practising Law Institute, on February 24.<\/p>\n<p>FINRA and the national securities exchanges submitted the proposal on limit up-limit down last year. Per the proposal, trades in listed securities would need to be executed within a range connected to recent instrument prices. The limits are set up to take the place of single stock circuit breakers (pilot basis-approval was given). Shillman noted that although single stock circuit breakers \u201chave worked relatively well,&#8221; they are a \u201crelatively blunt instrument\u201d and a wrong trade can happen prior to the break\u2019s activation. Such mistakes would be avoided with limit up-limit-down.<\/p>\n<p>The exchanges and FINRA also proposed to update current market-wide circuit breakers, which would tighten the trigger-window for a market-wide stoppage to a 7% index from a 10% price movement. The pause that occurs in trading would also be shortened. Meantime, in 2010, the SEC had proposed a \u201cconsolidated audit trail,\u201d which would be a national database for capturing in real time details on the National Market System securities and listed options. The customer\u2019s identity would be included in the data.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/look-out-for-rule-recommendati\/\"  title=\"Continue Reading Look Out for Rule Recommendations on Consolidated Audit Trail, Market-Wide Circuit Breaker Changes, and Limit Up-Limit Down Mechanisms\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Securities and Exchange Commission&#8217;s Division of Trading and Market Associate Director David Shillman reported that the staff is almost ready to recommend three market rules for adoption. He noted that the Commission would likely bundle recommendations dealing with consolidated audit trail, market-wide circuit breaker changes, and limit up-limit down mechanisms. Schillman made his comments at [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3740,3761],"tags":[],"class_list":["post-5260","post","type-post","status-publish","format-standard","hentry","category-miscellaneous","category-securities-and-exchange-commis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Look Out for Rule Recommendations on Consolidated Audit Trail, Market-Wide Circuit Breaker Changes, and Limit Up-Limit Down Mechanisms &#8212; Investor Lawyers Blog &#8212; March 10, 2012<\/title>\n<meta name=\"description\" content=\"Securities and Exchange Commission&#039;s Division of Trading and Market Associate Director David Shillman reported that the staff is almost ready to recommend &#8212; March 10, 2012\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/look-out-for-rule-recommendati\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Look Out for Rule Recommendations on Consolidated Audit Trail, Market-Wide Circuit Breaker Changes, and Limit Up-Limit Down Mechanisms &#8212; Investor Lawyers Blog &#8212; March 10, 2012\" \/>\n<meta name=\"twitter:description\" content=\"Securities and Exchange Commission&#039;s Division of Trading and Market Associate Director David Shillman reported that the staff is almost ready to recommend &#8212; March 10, 2012\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Look Out for Rule Recommendations on Consolidated Audit Trail, Market-Wide Circuit Breaker Changes, and Limit Up-Limit Down Mechanisms &#8212; Investor Lawyers Blog &#8212; March 10, 2012","description":"Securities and Exchange Commission's Division of Trading and Market Associate Director David Shillman reported that the staff is almost ready to recommend &#8212; March 10, 2012","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/look-out-for-rule-recommendati\/","twitter_card":"summary_large_image","twitter_title":"Look Out for Rule Recommendations on Consolidated Audit Trail, Market-Wide Circuit Breaker Changes, and Limit Up-Limit Down Mechanisms &#8212; 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