August Mayhem Escalated U.S. Stock Exchange Review of Safeguards
- Rules created after 2010 flash crash get closer inspection
- One goal is preventing erratic price moves at start of day
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Aiming to prevent a repeat of the Aug. 24 turmoil that rocked the U.S. stock market, exchanges are discussing how to strengthen a safety net put in place after the May 2010 flash crash.
Officials have held monthly meetings since the plunge to discuss fine-tuning market protections, according to three people familiar with the discussions, who asked to not be identified because the talks are private. One idea would tighten an existing curb to prevent erratic price moves during the opening minutes of the day, which could have mitigated losses on Aug. 24.