Reply #19: SEC Adds ETFs, More Stocks to Circuit-Breaking Program

[Demeter]

http://www.securitiestechnologymonitor.com/news/sec-circuit-breaker-expansion-26066-1.html

The Securities and Exchange Commission Friday approved the expansion of its post-Flash Crash circuit breaker program to include all stocks in the Russell 1000 Index and a test group of exchange-traded funds.

The SEC also approved new rules for national exchanges and the Financial Industry Regulatory Authority to follow that clarify the process for breaking erroneous trades, in cases such as the May 6 Flash Crash, when prices fall (or rise) precipitously.

The expansion of the program is expected to take place on the New York Stock Exchange, Nasdaq Stock Market, Direct Edge and BATS exchanges next week.

The Russell 1000 is composed of stocks of corporations with great market value. The weighted average market capitalization of its members is $69.8 billion. Its 10 top holdings are Exxon Mobil, Apple, Microsoft, Proctor & Gamble, General Electric, IBM, JP Morgan Chase, Johnson & Johnson, AT&T and Chevron. The exchange-traded funds subject to the circuit breaker are widely held, including BlackRock iShares, Invesco PowerShares, State Street Global Advisor SPDR and Vanguard funds.