SEC puts circuit breaker rules into effect

Reforms address issues that exacerbated the 2015 flash crash

Time to read: 2 min

Last February, I wrote about changes being proposed to the SEC’s circuit breaker rules and the agency’s recent decision to abolish Rule 48, which played a hand in the flash crash of Aug. 24, 2015. When I wrote my blog in February, the SEC had approved what’s known as Amendment 12 — an effort to standardize trading procedures and increase price visibility in the event of market disruptions.

On Nov. 20, Amendment 12 officially goes into effect. Given the relevance of the SEC’s new guidelines, I thought it would be worth revisiting the key provisions of Amendment 12 by reposting what I wrote in February.