UPDATE: Exchanges, SEC Are Determining Which Trades To Honor

Representatives of major U.S. exchanges and the Securities and Exchange Commission convened an emergency conference call late Thursday to examine potentially erroneous trades in multiple stocks.

The trades took place between 2:40 p.m. and 3:00 p.m. EDT, according to a notice from Nasdaq OMX Group Inc. (NDAQ). Officials are working to determine which trades will be broken.

"It's a coordinated effort to determine which trades to honor," said a person involved in the discussions.

Initial plans called for exchanges to void trades taking place in that period of time at prices more than 30% below or above the pre-2:40 p.m. time period, according to a person briefed on the discussions. That 30% threshold could still change, the person said.

The move would let traders break up trades in stocks whose prices plunged to pennies at the height of Thursday's market chaos, when the Dow Jones Industrial Average at one point was down by nearly 1,000 points.

NYSE Euronext (NYX), Nasdaq OMX, BATS Exchange and Direct Edge were said to be involved in the discussions.

-By Jacob Bunge, Dow Jones Newswires; 312-750-4117; jacob.bunge@dowjones.com

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