AP Sources: Exchanges to impose new trading rules

[NJmaverick]

Source: Associated Press

EW YORK – U.S. stock exchanges would briefly halt trading of some stocks that have big prices swings under new trading rules aimed at avoiding market plunges, according to two people familiar with the plan.
The rules are expected to begin in mid-June under a six-month pilot program agreed to by exchanges and regulators, the people said. They spoke on condition of anonymity because the plan has not been made public.
An announcement could come Tuesday.
Under the plan, trading of any Standard & Poor's 500 stock that rises or falls 10 percent or more would be halted for five minutes. These rules, known as "circuit breakers," would be applied if the price swing occurs between 9:45 a.m. and 3:35 p.m. Eastern time. That's almost the entire trading day.
The rules are intended to prevent a repeat of the May 6 market plunge in which the Dow Jones industrials fell to a loss of almost 1,000 points in less than 30 minutes. The pilot program is scheduled to end Dec. 10. Regulators and the exchanges would then decide whether to widen the program to include other stocks, according to the people.

Read more: http://news.yahoo.com/s/ap/20100518/ap_on_bi_ge/us_market_plunge_sec;_ylt=AurzZbRLVdwG0_jHvsl46_Ws0NUE;_ylu=X3oDMTFlNnJxZDFyBHBvcwM5OQRzZWMDYWNjb3JkaW9uX2J1c2luZXNzBHNsawNhcHNvdXJjZXNleGM-

[LiberalFighter]

1. Not strict enough.

They need to execute anyone involved in manipulating the market.

[Make7]

2. Just great. Now the stock exchanges are suppressing the free market. Socialists!!1! ( n/t )