Nasdaq OMX Outlines Series Of Circuit-Breaker Recommendations

Nasdaq OMX Group Inc. (NDAQ) voiced support for a series of circuit breakers that would halt stock trading when the Standard & Poor's 500 stock index falls below key levels, a top official will tell lawmakers Tuesday.

Eric Noll, head of transaction services for Nasdaq OMX, said the exchange operator supports new rules that would see a 15-minute halt in trading when the S&P 500 falls 5%, with a one-hour stoppage when the S&P 500 falls 10%.

If the S&P 500 fell 20%, trading would be halted for the remainder of the day, according to Noll.

Noll will deliver the recommendations to the House Financial Services Subcommittee later Tuesday, in a meeting convened to examine the massive price fluctuations seen Thursday, May 6, which highlighted a disjointed approach to market volatility among the biggest U.S. stock exchanges.

"We must learn the lessons" from last Thursday, Noll said in prepared testimony.

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

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