Trading exchanges should be able to move "very quickly" to implement a cross-market "circuit breaker" that would slow or halt trades in individual stocks that are experiencing unusual volatility, an official from Nasdaq OMX Group (NDAQ) said Tuesday.

"As we deal with some of the stock-by-stock issues, there may be some technological issues...but I think those are short-dated, not long-dated," said Eric Noll, executive vice president of Nasdaq's transaction services.

Noll was testifying before the House Financial Services Capital Markets Subcommittee about the May 6 market tumble. The exchanges have agreed with the U.S. Securities and Exchange Commission about a framework for a market-wide circuit-breaker.

Schapiro said earlier in the hearing that the SEC would work through the exchanges to write the rules. Lawmakers are pressing that the new standard be in place quickly, although Schapiro hasn't given a time frame.

NYSE Euronext (NYX) Chief Operating Officer Lawrence Leibowitz told the panel that the industry is almost 100% behind the SEC's plan for a market-wide circuit breaker.

-By Fawn Johnson, Dow Jones Newswires; 202-862-9263; fawn.johnson@dowjones.com
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