The Nasdaq Stock Market will cancel trades of stocks that moved 60% above or below the last price at 2:40 p.m. and 3 p.m. EDT Thursday
trading error is being blamed for a wild swing in the stock market on Thursday, during which the Dow at one point lost almost 1,000 points before closing down 348.NYSE Arca also will cancel electronic trades in the same time frame, said Katrina Clay, an NYSE Euronext spokeswoman. Nasdaq OMX Group issued the following statment after the market close Thursday: "NASDAQ reported that we had no technology or system issues associated with the trading that occurred between 2:00 and 3:00 p.m. ET today. Our market close process ran successfully. We have coordinated a process among US Exchanges and therefore, pursuant to rule 11890(b), NASDAQ, on its own motion, will cancel all trades executed between 14:40:00 and 15:00:00 greater than or less than 60% away from the consolidated last print in that security at 14:40:00 or immediately prior.
http://www.thestreet.com/story/10749500/1/nasdaq-nyse-arca-to-cancel-60-swing-trades-in-selloff.html?cm_ven=GOOGLEN