Alert July 06, 2010

SEC Publishes for Public Comment Proposals by National Securities Exchanges and FINRA to Expand Circuit Breaker Pilot to Include Stocks in Russell 1000 Index and Certain Other Exchange Traded Products Including ETFs

The SEC published for public comment proposals by the national securities exchanges and FINRA to expand a recently adopted circuit breaker program to include all stocks in the Russell 1000 Index and certain exchange-traded products (the “ETPs”), consisting of selected (a) exchange-traded funds, which are generally designed to track securities indices, (b) exchange-traded vehicles, which are designed to track the underlying performance of an asset or index, related to futures contracts, commodities or currency, and (c) exchange‑traded notes, which are senior unsecured debt obligations designed to track the total return of an underlying index, benchmark or strategy.  As discussed in the June 15, 2010 Alert, the SEC has previously approved a circuit breaker pilot program in effect through December 10, 2010 that applies to stocks listed in the S&P 500 Index.  The ETPs proposed to be included in the pilot program are listed here.  The NYSE proposal is available here.  The FINRA proposal is available here.