MAY 6 MARKET PLUNGE MAY 6 MARKET PLUNGE Major exchanges on Monday agreed with regulators to bolster their circuit breakers, in an effort to prevent the kind of mayhem that gripped financial markets last week. Changes to circuit breakers, or temporary pauses in trading to allow buyers and sellers to collect themselves in fast-moving markets, are expected following the Securities and Exchange Commission's meeting with the leaders of the six main exchanges, including the New York Stock Exchange, Nasdaq, BATS, Direct Edge, International Securities Exchange and Chicago Board Options Exchange. EFFECT: Fear rises while Dow's 1,000-point drop remains a mystery Details of the proposed curbs were not provided. However, the SEC said in its statement that the parties agreed on a "structural framework" for "strengthening" circuit breakers and handling incorrect trades. Details are to be hashed out today, the SEC said. The NYSE declined to comment. The Nasdaq, in an e-mail, said it had a productive meeting with the SEC. Having the exchanges agree upon and use the same standards of when to slow down trading could help prevent the market turbulence that caused stocks to go into an unusual free fall last Thursday, market observers say. The Dow Jones industrial average plunged 999 points in 30 minutes only to largely bounce back. The fact the NYSE was slowing down trades in some stocks, while other all-electronic exchanges were still conducting high-speed computerized trades in those same stocks, caused some orders to be routed to exchanges with fewer orders. That resulted in erratic prices. "There has to be harmony between exchanges," says Edward Wedbush, CEO of investment firm Wedbush Securities. While exchanges have gone electronic, which allows for rapid trading, rules to hold markets in sync haven't kept up, Wedbush says. Circuit breakers can be helpful in allowing investors to gather breaking news so they can make informed decisions, says Michelle Clayman of New Amsterdam Partners. "Circuit breakers do seem to work," she says. Meanwhile, investors are still somewhat in the dark about exactly what happened. Some details are expected today, though, as Rep. Paul Kanjorski, D-Pa., is scheduled to hold a hearing on the matter. "We still don't know" what happened, says Michael Farr of Farr Miller & Washington. "But what we have learned is that our system is vulnerable." Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. Read more