updated 5/10/2010 4:21:31 PM ET 2010-05-10T20:21:31

Regulators and heads of the major exchanges have generally agreed on the need for a circuit breaker that applies across markets if individual stocks fall precipitously, a source familiar with the talks said on Monday.

The Securities and Exchange Commission, six major exchanges, and brokerage watchdog, the Financial Industry Regulatory Authority, have also agreed on the need for clear rules on dealing with erroneous trades, and on the need to update existing market-wide circuit breakers for severe market declines. The source spoke on condition of anonymity because the talks are private.

The source also said regulators have not pinpointed the exact cause of Thursday's dramatic market dive.

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