The Securities and Exchange Commission (SEC) has proposed to expand the recently released circuit breaker programme to encompass 344 ETFs and all stocks in the Russell 1000 index.
The circuit breaker programme, which was approved earlier in June following the "flash crash" on May 6, is designed to halt trading in a security for a five minute period if the security experiences a 10% price change during the preceding five minutes.
The SEC says the temporary trade curb is intended to give markets an opportunity to attract new trading interest in an affected stock, establish a viable market price and resume orderly trading.
This programme was initially unveiled to apply to stocks constituting the S&P 500 index, on a pilot basis until December 10 this year, although under the SEC's proposal this will include a range of ETFs.
SEC chairman Mary Schapiro says: "The proposals would expand the uniform circuit breakers to many more stocks and ETFs.
"We look forward to receiving comments from the public on the proposed addition of the Russell 1000 index securities and the selected ETFs to the circuit breakers."
The SEC says the ETFs to be included in the proposal will be available on its website.
Schapiro adds she hopes the circuit breaker programme will continue to expand to encompass additional publicly traded companies.
The chairman doggedly tries to be amusing
'Profitability is almost a myth'
Active Wealth in liquidation
Cautious welcome for volatility
Report output options