SEC Announces Limit Up-Limit Down Proposal

On Monday, April 5, 2011, the Securities and Exchange Commission (SEC) announced a proposal establishing the "limit up-limit down" mechanism aimed at curbing extraordinary market volatility in the U.S. equity markets.  The proposal was filed by national securities exchanges and the Financial Industry Regulatory Authority (FINRA).  According to the proposal, "trades in a listed stock would have to be executed within a range tied to recent prices for that security."  The proposed rule, if approved, would replace existing single stock circuit breakers and would apply to all trading centers, alternative trading systems, and broker-dealers.

Read the SEC press release

Federal Reserve Proposes Rule to Repeal Regulation Q

On Wednesday, April 6, 2011, the Federal Reserve Board proposed the repeal of Regulation Q.  Regulation Q prohibits institutions that are members of the Federal Reserve System from paying interest on demand deposits.  The proposed rule implements Section 627 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Read the Federal Reserve press release

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