Investigation continues into stock markets’ May 6 crash

by Vicki Needham - 06/21/10 7:35 PM ET

The SEC has outlined a plan to clarify the process for breaking erroneous trades that would make it clearer when, and at what prices, trades would be broken. It also has approved a plan to create stock-by-stock circuit-breakers that call for pausing trading when stocks fluctuate too much.

The SEC is also looking at other issues following the May 6 market plunge, including ways to address the risks of stop loss and market orders, ways to deter or prohibit the use of stub quotes, and studying the effect of trading protocols including trading pauses and self-help rules.

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