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5:00Circuit Breakers and Trading Halts: Who Pulls the Plug and When
When a stock is in free-fall, who decides to stop the music? It is not a panicked human slamming a red button, it is a set of pre-published percentage thresholds that fire automatically and give the market a few minutes to catch its breath.
A circuit breaker is an automatic, rules-based pause on trading. Nobody "decides" to pull the plug in the moment; the thresholds are set in advance, published, and approved by the regulator (in the US, the SEC), so the brake fires the same way for everyone. There are two layers: a market-wide brake for the whole market, and a single-stock brake for one runaway name.
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