The Securities and Exchange Commission has consented to new exchange rules for breaking “clearly erroneous” trades, Mondovisione reports. The rules will offer a consistent standard across stock exchanges and lower uncertainty about what happens to a trade depending on where it is executed.
To assure consistent results across the equities markets, the exchanges, headed by NYSE Arca, worked along with the Commission staff to develop “model” rules with more objective standards for breaking trades. Clearly erroneous trades can result from various reasons, including human error or computer malfunction.
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