NYSE Arca to partially roll back 'limit up-limit down program

NEW YORK Mon Aug 26, 2013 6:14pm EDT

NEW YORK (Reuters) - An exchange run by NYSE Euronext NYX.N partially rolled back on Monday a new program designed to limit wild price swings in publicly traded securities after it triggered dozens of trading halts last week.

Beginning on Wednesday, NYSE Arca will temporarily remove 530 thinly traded securities that had triggered trading halts solely because the amount they rose or fell was tightened too much, the exchange said in a notice to members.

NYSE Arca removed 530 securities from a list of 1,404 exchange-traded products that were part of the second phase of the limit up-limit down program. The securities that were rolled back traded less than 10,000 shares a day on average over a 30-day period ended August 21, NYSE Arca said.

The Securities and Exchange Commission approved the program last year. A trading halt is triggered if a price rises or falls more than 5 percent over a five-minute span for the most heavily traded shares. The price band was widened to 10 percent to trigger a halt in the second phase of the roll-out.

NYSE Arca accounts for about 90 percent of ETPs, a reason why so many of the trading halts occurred on its platform

(Reporting by Herbert Lash. Editing by Andre Grenon)

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