SEC proposes new circuit breakers for financial markets

During the pilot period, the SEC staff will examine ways to address the risks of market orders and their potential to contribute to sudden price moves and to consider steps to deter or prohibit the use of market makers of “stub” quotes, which aren’t intended to indicate actual trading interest. 

The effects of trading protocols at the exchanges, including the use of trading pause and self-help rules will be analyzed. The SEC and FINRA will work to improve the process for breaking erroneous trades by assuring speed and consistency across markets. 

The SEC is holding a 10-day public comment period on the proposed rules that were determined after a meeting between FINRA and SEC staff.