Commentary: Circuit Breakers Do More Harm Than Good

When you're cruising down a busy highway, finding stop signs in your path can be downright dangerous. At the least, they back up traffic, and at worst, cause accidents. In essence, that's the problem with so-called circuit breakers. In the years after the 1987 crash, the New York Stock Exchange and the Chicago Mercantile Exchange imposed rules that halt or slow trading when prices decline a specified amount from the previous day's close. The idea is to prevent stocks from falling too far too fast.

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