NYSE Sets 2008 ‘Circuit Breakers’
NYSE Sets 2008 ‘Circuit Breakers’
By a WALL STREET JOURNAL Staff Reporter
December 31, 2007 6:22 p.m.
NEW YORK — The New York Stock Exchange announced its first-quarter 2008 “circuit-breaker” trigger levels that would halt trading for certain large market declines.
Circuit-breaker levels are set quarterly as 10%, 20% and 30% of the Dow Jones Industrial Average’s average closing values of the previous month, rounded to the nearest 50 points.
(Meanwhile, there was no announcement on program-trading “collars” since that market mechanism was discontinued in November 2007.)
The first two circuit-breaker triggers were set at the same level as currently; the third was set at a slightly lower trigger point than currently:
• Level 1 Halt: In first-quarter 2008, a 1,350-point drop in the DJIA before 2 p.m. EST will halt trading for one hour; for 30 minutes if between 2 p.m. and 2:30 p.m.; and have no effect if at 2:30 p.m. or later unless there is a level 2 halt.
• Level 2 Halt: A 2,700-point drop in the DJIA before 1 p.m. will halt trading for two hours; for one hour if between 1 p.m. and 2:00 p.m.; and for the remainder of the day if at 2 p.m. or later.
• Level 3 Halt: In the event of a 4,000-point decline (down from the previous quarter’s 4,050-point trigger), the market would close for the day, regardless of the time.
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