NYSE sets Q3 circuit breakers, trading collars
NEW YORK, June 30 (Reuters) - The New York Stock Exchange, the world's largest stock exchange, said Wednesday new circuit breakers and trading-collar trigger levels for the 1999 third quarter will take effect on Thursday ...
Under the new circuit-breaker levels, a 1,050-point drop in the Dow Jones industrial average before 2 p.m. Eastern time will halt trading for one hour, the NYSE said. Trading will be halted 30 minutes if the Dow drops 1,050 points between 2 p.m. and 2:30 p.m. And if the drop occurs at 2:30 p.m. or later, trading won't be affected.
If the Dow drops 2,150 points before 1 p.m., trading will be halted for two hours. If the drop happens between 1 p.m. and 2 p.m., trading will be stopped for one hour, the exchange said. The NYSE said trading will be halted for the rest of the day if such a drop occurs at 2 p.m. or later.
A 3,200-point drop will halt trading for the rest of the day regardless of its timing, the NYSE said.
Trading collars, which restrict index arbitrage trading, in the third quarter will kick in when the Dow moves 210 points or more above or below its closing value on the previous trading day, the NYSE said. The collars will be removed when the Dow is above or below the previous day's close by 100 points, the exchange said ...
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