NYSE Proposes Changing Circuit-Breakers
NEW YORK (Reuters) - The New York Stock Exchange said Thursday it would keep its so-called
"circuit-breaker" rules essentially intact, although it proposed slight changes to their use at the end of the trading
day.
The NYSE said it would keep the current 350- and 550-point declines in the Dow Jones industrial average as
triggers for the circuit-breakers, instead of moving to percentage changes, which had been widely expected.
However, it proposed eliminating the 350-point trigger at 3 p.m. Eastern Time, an hour before the market closes.
After that time, trading would be halted only if the Dow were to drop 550 points.
The NYSE also proposed slight modification to the 550-point trigger. After 2 p.m., it would trigger only a
30-minute halt, instead of a 60-minute halt.
However, trading would not resume if the 550-point threshold was triggered after 3 p.m.
Currently, if the Dow falls 350 points from its previous closing level, all trading is stopped for 30 minutes. If the
average falls 550 points, trading is stopped for an hour.
The exchange also said it would propose additional modifications to the rules next year, before they expire Jan. 31.
The NYSE also said it asked the Securities and Exchange Commission to consider changes to its "safe-harbor"
rules to allow companies to buy their own shares during that period.
Currently, safe-harbor is not available in the last 30-minutes of trading.
^REUTERS@ |
