The nation's stock exchanges and the Financial Industry Regulatory Authority Wednesday filed a proposal with the Securities and Exchange Commission to establish a new "limit up-limit down" mechanism that would limit swings in stock prices, during periods of volatility. Under the proposal, trades in listed stocks would have to be executed within a range tied to recent prices for that security.

If approved by the SEC, the new limit up-limit down mechanism would replace the existing single stock circuit breakers, which were approved on a pilot basis shortly after the market events of May 6, 2010.

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