U.S. Stock Exchanges Delay Expansion of Volatility Curbs

U.S. stock exchanges delayed the expansion of volatility curbs by two months, according to a notice from Nasdaq OMX Group Inc.

The marketwide system known as limit-up/limit-down, which is meant to prevent mistakes from prompting wide swings in stock prices, won’t be expanded to cover the final 15 minutes of the trading session until Feb. 24, according to Nasdaq. The extension had been planned for Dec. 8.

Regulators have been fine-tuning systems for curbing volatility since the flash crash of May 2010 briefly erased more than $800 billion in value from U.S. share prices. The limit-up/limit-down initiative replaces a system of share halts known as circuit breakers and has been phased-in since April.

To contact the reporter on this story: Sam Mamudi in New York at smamudi@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.