NEW YORK, Aug 26 (Reuters) – An exchange run by NYSE
Euronext partially rolled back on Monday a new program
designed to limit wild price swings in publicly traded
securities after it triggered dozens of trading halts last week.
Beginning on Wednesday, NYSE Arca will temporarily remove
530 thinly traded securities that had triggered trading halts
solely because the amount they rose or fell was tightened too
much, the exchange said in a notice to members.
NYSE Arca removed 530 securities from a list of 1,404
exchange-traded products that were part of the second phase of
the limit up-limit down program. The securities that were rolled
back traded less than 10,000 shares a day on average over a
30-day period ended Aug. 21, NYSE Arca said.
The Securities and Exchange Commission approved the program
last year. A trading halt is triggered if a price rises or falls
more than 5 percent over a five-minute span for the most heavily
traded shares. The price band was widened to 10 percent to
trigger a halt in the second phase of the roll-out.
NYSE Arca accounts for about 90 percent of ETPs, a reason
why so many of the trading halts occurred on its platform
(Reporting by Herbert Lash. Editing by Andre Grenon)
