SEC Delays Ruling On New Stock-Market Shock Absorbers

The U.S. Securities and Exchange Commission on Wednesday put off until Nov. 28 a decision on stock exchanges' plan for a new system of shock absorbers to contain market volatility.

Regulators are weighing a proposal, put forth by exchanges in April, to retool the "circuit breaker" system developed to curb the massive price swings seen during the May 2010 "flash crash," replacing it with a new regime traders say will allow the market to operate more smoothly.

A ruling on the plan had been slated for Sept. 29 . Another two months will let regulators weigh reaction from the industry, which has included concerns that the program could create snarls for traders trying to price derivatives contracts.

The new concept would put in place curbs preventing share prices from rising or falling too quickly, though buying and selling could continue within such limits.

The current circuit breaker system automatically halts all trading in stocks and exchange-traded funds that see a 10% price move within a five-minute period. These temporary halts have at times frustrated firms that must sit on the sidelines until the affected security is reopened for business.

-By Jacob Bunge

Hedge Funds Face New Round of Redemptions As Losses Bite

LONDON (Dow Jones)--The hedge fund industry is braced for a new round of redemptions after two months of poor performance and growing investor desire to move money into cash.

The world's largest listed hedge-fund manager, Man Group PLC (EMG.LN), stoked fears of another industry meltdown Wednesday when it reported a net $2.6 billion was pulled from its funds between June 30 and Sept. 26 . It lost a further $1.5 billion from fund losses and $1.9 billion from the effect of a stronger U.S. dollar when accounting for euro- and Australian dollar-denominated funds. Its GLG unit, acquired last year, posted particularly large outflows.

Man Group shares fell as much as 25% in London.