Algorithmic Trading Circuit Breaker Act
This legislation requires stock exchanges to implement 15-minute trading halts when algorithmic trading causes price movements exceeding 5% in any 10-minute period for individual securities or 3% for major indices, and mandates registration and source code escrow for all algorithmic trading systems.
Discussion (7)
This is exactly the kind of legislation we need. The current system is broken and this addresses the root causes directly.
I propose adding a phased implementation schedule to make this more practical.
Add phased implementation timeline
+ Proposed Text
Section 3 amended: "Implementation in three phases over 36 months — Phase 1: entities over 500 employees; Phase 2: 100-500; Phase 3: all remaining."
I work with affected populations and can say firsthand this kind of reform is desperately needed.
The timeline is too aggressive. I propose extending implementation by 2 years.
Extend implementation timeline by 2 years
+ Proposed Text
Section 2(c) amended: "Compliance deadline extended from 24 to 48 months, with interim milestones at 12, 24, and 36 months."
Good first draft. We need to hear from more stakeholders before finalizing.
Good first draft. We need to hear from more stakeholders before finalizing.
The timeline is too aggressive. I propose extending implementation by 2 years.
Extend implementation timeline by 2 years
+ Proposed Text
Section 2(c) amended: "Compliance deadline extended from 24 to 48 months, with interim milestones at 12, 24, and 36 months."