Pact Reached on Market Circuit Breakers

The U.S. stock markets and the Securities and Exchange Commission reached a consensus to widen the triggers that halt trading during a market plunge to 10% and 20% of the Dow Jones industrial average, regulators said. The informal agreement has been solidified by the SEC, under market-regulation director Richard Lindsey, after the New York Stock Exchange board considered the plan on Dec. 4 and chose not to act, the four regulators said. The Big Board is likely to approve the new circuit-breakers at its Feb. 5 board meeting. The other stock markets are expected to follow suit and approve similar rules that would be forwarded to the SEC for final adoption. Under the new plan, the markets would close for half an hour if the Dow falls 10%, and again for an hour if it declines 20%.