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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (15163)	10/1/2001 9:38:21 AM
From: yard_man	Respond to of 209892

NEW YORK, Oct 1 (Reuters) - Smaller swings in the Dow Jones industrial average (^DJI - news) in the current fourth quarter versus last quarter will trigger stock market trading curbs or halts, under the New York Stock Exchange's quarterly revision of the levels. ADVERTISEMENT The Big Board's new circuit-breaker and trading-collar trigger levels go into effect Monday, Oct. 1. The trigger levels have been reduced from the third quarter to the fourth because they are based on percentages of the average daily closing value of the Dow in the last month of the prior quarter. The Dow, which began the third quarter at 10,502.4, starts today at 8,847.6. Trading curbs relate to limitations placed on index-arbitrage trading, while the circuit breakers are the temporary stops in trading when the Dow falls significantly. The first trigger is a 180-point decline or rise in the Dow, which has been lowered from the previous level of 210 points. When there is such a decline, trading in all index-arbitrage sell orders for Standard & Poor's 500 (^SPX - news) stocks need to be ``stabilizing, or sell plus'', for the rest of the day, unless the change in the Dow diminished to 90 points or less during the same trading day. ``Sell plus'' essentially means a market order to sell with a higher price to be obtained that the last sale, with certain other conditions. Conversely, when the trading curbs are put in place with a Dow rise of 180 points, index-arbitrage buy orders of the S&P 500 stocks must be ``stabilizing, or buy minus'' ``Buy minus'' essentially is a market order to buy at a price not higher than the last sale, with certain other conditions. HALTS Trading halts will occur when there are 10-, 20- and 30-percent drops in the Dow: -- A 900-point Dow drop before 2 p.m. ET will halt trading for one hour. If this happens between 2 p.m. and 2:30 p.m., the halt will last for 30 minutes. If it happens after 2:30 p.m., trade will not be affected. That trigger point is down from 1,100 in the third quarter, -- An 1,800-point drop in the Dow before 1 p.m. will halt trading for two hours, for one hour if between 1 p.m. and 2 p.m., and for the remainder of the day if at 2 p.m. or later. In the third quarter, the comparable number was a 2,150 point decline. -- A 2,700-point drop will halt trading for the remainder of the day regardless of when the decline occurs. This level was reduced from 3,250 in the third quarter.