Bloomberg reports on comments from the 'inventor' of circuit breakers for the US stock market, Nicholas Brady, a former U.S. Treasury secretary
Brady ran a committee that recommended the curbs on US equity trading after the 1987 crash
- China needs "a set of circuit breakers that appropriately reflects their market."
Trading on US equity markets are paused after 7 and 13% falls in the S&P500 and halted for the day after a 20% fall:
7 percent losses are rare in the U.S. -- they were only common during the 2008 financial crisis, October 1987, and the Great Depression -- Chinese shares have dropped about that much seven times in the past year.
Brady recommends:
"The right thing to do is to widen their band"
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