SEC considering changes to circuit breaker rules

[devil21]

Something worth watching:
https://www.zerohedge.com/markets/m...ow-advising-sec-changes-circuit-breaker-rules

Who better to help the SEC determine the market's circuit breaker rules than Morgan Stanley, BlackRock and Citadel Securities? After all, what vested interest could they have in tilting the playing field in their own direction?

But, alas, they are among the names who have reportedly made up a "loose task force" on helping determine when and how market circuit breakers should be implemented, according to the Wall Street Journal. And apparently, the group isn't happy with how the market's circuit breakers worked back in March.
...................
The "task force" (lobbying group?) has suggested that the rules be modified for the first 15 minutes of the trading day. One idea is to allow trading to open 7% lower, if necessary, but hold off on halts until the S&P hits another threshold. The group has yet to come to a consensus on a definitive rule change.

Just spitballin' here but it sounds like the big trading houses want the circuit breaker rules changed so they can pull an "XIV" or "DWTIF" to any ETF/ETN they want. What that means is basically blowing up an entire trading vehicle overnight before the markets even open. XIV went from a huge gain to worthless overnight during the vol-magedon because of VIX futures, and DWTIF recently went from up 900% to worthless overnight based on oil futures. Changing the circuit breaker rules at the open would allow many trading vehicles to blow up overnight, then the brokerages could shut down access to their sites (a la Robin Hood) to prevent anyone from getting out while the trading vehicle is finished off right after the open, instead of the automatic halt currently in place.

(eta: Many of the ZH commenters somehow interpret this as the houses rigging markets to never go down but I disagree completely. When new breaker rules are implemented, and they will be if MS, Citadel, etc want them, very soon after the markets will dump bigly and majorly and a lot of vehicles blown up.)