<<ADVISORY - NYSE circuit breaker levels
NEW YORK, Aug 27 (Reuters) - It would take a drop of at least 900 points, or roughly 10 percent, in the Dow Jones Industrial Average for the newly-widened circuit breaker trading halts to kick in.
...........
Under the new rules, point levels are set quarterly at 10 percent, 20 percent and 30 percent in the Dow Jones industrial average. levels are readjusted every quarter, using the Dow's closing value of the previous month rounded to the nearest 50 points.
The new levels are readjusted December 30, March 30, June 30 and September 30, and go into effect the next trading day.
Under the latest figures, for trading during the third quarter of 1998, it would take a 900-point decline in the Dow drop to halt trading for one hour if the decline occurs before 1400 EDT.
Trading would be halted for 30 minutes if the drop happens between 1400 and 1430 EDT. There will be no effect if the 850-point drop occurs between 1430 and 1600 EDT.
A 1,750-point drop will halt trading for two hours if the sell-off occurs before 1300 EDT; for one hour if before 1400 EDT, and for the rest of the day if between 1400 and 1600 EDT.
A 2,650-point drop will halt trading for the remainder of the day, regardless of when the decline occurs.
The Chicago Mercantile Exchange and the Chicago Board of Trade also revised circuit breakers for stock-index futures. >>
PS. Note that today's experience shows they can calculate DJIA much better/faster than the cap-weighted indexes. |
