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Repercussions and Lessons: Examining the Flash Crash a Year Later

April 5, 2011: Price Collars Proposed


The Securities and Exchange Commission proposed a "limit up and limit down" mechanism, to replace circuit breakers. If approved by the SEC, the mechanism would halt or slow down trades of a particular stock if the price moves 10% or more in a five-minute period. Based on the proposal, there would be a five-minute pause if trading is unable to occur within the price band for more than 15 seconds.



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