NEW YORK — The Securities and Exchange Commission intends to take a closer look at two separate plans by U.S. stock-exchange operators — designed to prevent another “flash crash” — to ensure that the measures don’t create new problems, according to regulators.
The SEC will consider jointly a proposal for a new system of price limits, intended to soften rapid swings in the price of individual securities, alongside a separate effort to tighten marketwide halts that freeze all trading in case of a rapid rise or fall in the Dow Jones industrial average, officials told exchange staff in a regulatory filing.
Such a joint evaluation will give authorities more time to weigh potential effects of the plans. Exchanges, brokers and investors will have 35 days to offer further details on the plans, according to regulators.
