The Securities and Exchange Commission is looking at such mechanisms as price collars and limits on upward or downward movements in a stock in a single day, in the wake of the May 6thr "flash crash."

"We are considering ... whether other steps are appropriate to reduce the risk of sudden disruptions and clearly erroneous trades," SEC chairman Mary L. Schapiro said at the outset of a meeting of the Joint Advisory Committee of the SEC and the Commodity Futures Trading Commission on the implications of the events in May, when the Dow Jones Industrial Average fell nearly 1,000 points in a seeming flash and stocks, such as that of Accenture, fell as low as one cent.

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access