SEC considers ‘trading bands' to prevent a repeat of the flash crash

The Securities and Exchange Commission is thinking of replacing the trading pauses currently being trialed at US exchanges with trading bands to head off another flash crash

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US securities may be subject to trading bands

SEC considers ‘trading bands' to prevent a repeat of the flash crash

As the trading pause trial programme for US exchanges comes to an end, the Securities and Exchange Commission (SEC) is discussing new measures to prevent a reoccurrence of the May 6 flash crash.

Trading pauses were introduced across US exchanges in June, and work by applying a five-minute halt every time a security in the programme moves 10% or more in a five-minute period. An auction then takes place to discover the price at

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