Flash Crash (2010)
The Dow Jones Industrial Average plunged nearly 1,000 points in about 36 minutes, wiping out roughly $1 trillion in market value before recovering. Some stocks traded at absurd prices — Accenture briefly traded at a penny.
The SEC and Commodity Futures Trading Commission opened investigations, exposing flaws in market structure.
The crash led to the Limit Up-Limit Down Plan, a set of price bands designed to pause trading during extreme volatility.
The LULD Plan is the mechanism this rule extends. The new Overnight Price Bands are a direct successor to the bands created after the Flash Crash.
