{"id":5304,"date":"2012-06-05T00:00:00","date_gmt":"2012-06-05T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/06\/finra_initiatives_addressing_m"},"modified":"2022-04-28T12:38:47","modified_gmt":"2022-04-28T17:38:47","slug":"finra-initiatives-addressing-m","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-initiatives-addressing-m\/","title":{"rendered":"FINRA Initiatives Addressing Market Volatility Approved by the SEC"},"content":{"rendered":"

The Securities and Exchange Commission has approved a one-year pilot for a plan meant to shield equity markets from volatile price changes. The plan is based on two initiatives from the Financial Industry Regulatory Authority and the national securities exchanges.<\/p>\n

One initiative involves a “limit up-limit down” proposal that would not allow for trades in US listed stocks beyond a certain range to be determined by recent prices. This will replace single-stock circuit breakers.<\/p>\n

With the new mechanism, trades in individually listed equity securities wouldn\u2019t be able to take place beyond a certain price band, which would be a percentage level lower and higher than the price of the security in the most recent five minutes. For securities that are more liquid, set levels would be 5% or 10%, with percentages doubling during closing and opening periods. For securities priced at $3\/share or lower, there will be wider price bands.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Securities and Exchange Commission has approved a one-year pilot for a plan meant to shield equity markets from volatile price changes. The plan is based on two initiatives from the Financial Industry Regulatory Authority and the national securities exchanges. One initiative involves a “limit up-limit down” proposal that would not allow for trades in […]<\/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":[3739,3740,3761],"tags":[],"class_list":["post-5304","post","type-post","status-publish","format-standard","hentry","category-finra","category-miscellaneous","category-securities-and-exchange-commis"],"yoast_head":"\nFINRA Initiatives Addressing Market Volatility Approved by the SEC — Investor Lawyers Blog — June 5, 2012<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission has approved a one-year pilot for a plan meant to shield equity markets from volatile price changes. The plan is — June 5, 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\/finra-initiatives-addressing-m\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"FINRA Initiatives Addressing Market Volatility Approved by the SEC — Investor Lawyers Blog — June 5, 2012\" \/>\n<meta name=\"twitter:description\" content=\"The Securities and Exchange Commission has approved a one-year pilot for a plan meant to shield equity markets from volatile price changes. 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