Trading Curbs, JPMorgan CIO, Nasdaq OMX ‘Loop’: Compliance
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U.S. stock exchanges proposed changes to trading curbs meant to safeguard equity markets, revising an April 2011 proposal for a system that would prevent trades at prices outside a certain band.
The curbs would give markets that list companies and exchange-traded funds new flexibility to pause stocks when doing so may damp volatility, according to a Securities and Exchange Commission filing dated May 24 from venue operators including NYSE Euronext and Nasdaq OMX Group Inc. The system would be implemented in February as a one-year pilot program, said the group, which includes the Financial Industry Regulatory Authority, overseer of more than 4,400 brokers.