Stock market circuit breakers
The New York Stock Exchange has announced the third-quarter “circuit breaker” points at which trading will be halted for single-day declines in the Dow Jones Industrial Average. Let’s hope this is the last time we think about these in the next three months.
In third-quarter 2009, the 10, 20 and 30-percent decline levels, respectively, in the DJIA will be as follows:
Level 1 Halt
A 850-point drop in the DJIA before 2 p.m. 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 1,700-point drop in the DJIA before 1:00 p.m. will halt trading for two hours; for one hour if between 1:00 p.m. and 2:00 p.m.; and for the remainder of the day if at 2:00 p.m. or later.
Level 3 Halt
A 2,600-point drop will halt trading for the remainder of the day regardless of when the decline occurs.
Don Mecoy
Business Writer
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