US Stock Exchanges have just changed their proposal to the SEC for the Limit Up Limit Down (LULD) safety mechanism that is supposed to take the place of the SEC’s Single Stock Circuit Breakers (SSCBs).
What do we have in place now? Currently we have SSCBs in place that are designed to safeguard equity markets. These SSCBs halt trading when the price of a stock/ETF moves 10% within 5 minutes.
What was the original LULD proposed? You can read the SEC’s May 25th 2011 proposal here. In essence, LULD would create
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