A circuit breaker would do nothing for the exchange at this point. The way to solve this moving the trading engine to it is own server/program. It is right now connected to the front-end. Also the great thing about bitcoins is how open and free market it is, if bitcoin free falls to $0.01 it should be able. Just like it should be able to go to $1000, if the market dictates it.
When I read Nova's post I didn't think that he was suggesting that a circuit breaker would fix the exchange's problem, just like a real life circuit breaker doesn't fix the electrical fault in your house wiring when some dumbshit threw a toaster in the bathtub. It prevents the house from burning down.
Now think about it if that toaster was thrown in the bathtub every day, wouldn't you at some point get a new toaster. That is where the issue is. Circuit breaking wouldn't fix anything. It would be tripped every day, and just kill trading.
I acknowledge that you have pointed out that if the breaker was tripped over and over, this will have a ripple affect on the flow of trading. That is valid.
You seem to have missed my point entirely. Let's pretend that whatever was causing the engine lag is not happening anymore. That is not the topic of this thread.
Why would you not want to have something like this in place? So far it seems like your main argument is that you think that the market should be entirely free, and no one appears to be proposing that a regulation be put in place that forces all exchanges to implement this. It seems like a common sense good practice to follow and this thread might be a good place to hammer out that framework. Not discuss how you think that the coders of the engine are idiots.