Re: Exchanges must have circuit breakers

After any unusual drop or rise in value, a circuit breaker must be implemented.

Reads to me that as soon as there is an "unusual" change in the price, then trading should be stopped. i.e. the suggestion of the OP is that the trigger is the higher than usual price fluctuations.

This is the definition of limit up / down.

If there is suspected fraud then that is another matter altogether.....My point is that the trigger can not ONLY be price up/down.

its only a limit for a short period of time. for the things to get verifyed. and checking for hackers, then the market resume.
of cource there are many ways to cheat, they should all be detected by the circuit breaker.

So how would one determine, based ONLY on price movement alone, "in a short period of time" that the price movement is due to fraudulent activity and not natural market conditions?

when a really huge price movement happens, things should be CHECKED! mtgox does not only relay on the price. magicaltux have backstage access the site! he can look at all the accounts, and find out if something unusual has happend.

I think we are saying the same thing with different semantics.