SEC proposes plan to address market volatility

For stocks currently subject to the circuit breaker pilot, the percentage would be 5 percent, and for those not subject to the pilot, the percentage would be 10 percent, SEC said in a statement. 

If approved by the SEC, the new system would replace the existing single-stock circuit breakers that were put into place as part of a pilot program shortly after the market events last year.

Under the existing circuit breaker pilot, trading pauses across the markets for a five-minute period if the stock experiences a 10 percent change in price over the preceding five minutes. 

The circuit breaker pilot was initially approved by the SEC on June 16, and is set to expire on Aug. 11.