Reply #7: NYSE expects all U.S. stocks to have circuit breakers [View All]

SHANGHAI (Reuters) – All U.S. stocks will probably be subject to so-called circuit breakers by the end of this year, Duncan Niederauer, chief executive officer of stock exchange operator NYSE Euronext, said on Thursday.

The circuit breakers, a mechanism to halt trading in a stock for five minutes if it falls more than 10 percent within five minutes, will initially apply to stocks in the Standard & Poor's 500 index under a proposal by the Securities and Exchange Commission as regulators try to avoid a repeat of the mysterious May 6 market slide that quickly spiralled out of control.

For example, some stocks need to fall 10 percent to trigger the circuit breaker mechanism while some others only need to fall 5 percent or 2 percent, he said.

http://news.yahoo.com/s/nm/20100520/bs_nm/us_nyse_circuit