Low-Volume Securities out of LULD, for Now

NYSE to remove lightly traded securities from LULD system, review how to reincorporate them with lower chance that a wide bid-ask spread will halt trading.

NYSE Euronext plans to reevaluate a program aimed at curbing sudden price swings after about 40 thinly traded securities set off trading halts last week.

NYSE said it will work to refine the system, known as limit up/limit down (LULD), after it briefly stopped trading in some securities only because they had a wide bid-ask spread, according to a release from its Arca unit today. About 530 securities that move 10,000 shares or less per day on average will be removed from the program and return to the old system of circuit breakers.

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