The SEC doubled the scope of stock trading curbs to include all companies in the Russell 1000 index, expanding a program meant to help prevent another plunge like the May 6 rout.
The announcement was made in a statement on the regulator’s website. The volatility curbs had applied only to S&P 500 stocks. The Russell 1000 tracks shares of the biggest U.S. companies.
The program was implemented by U.S. exchanges after the May 6 stock market crash that erased $862 billion in less than 20 minutes. The curb halts a company’s stock for five minutes after it rises or falls at least 10% within five minutes.
Seven stocks have been paused by the volatility circuit breaker: Intel on Aug. 27, Micron Technology on Aug. 5, Cisco Systems on July 29, Genzyme on July 23, Anadarko Petroleum on July 6, Citigroup on June 29 and Washington Post on June 16.