There are three thresholds each of which represents different level of decline in terms of points in Dow Jones industrial average.
In the event where threshold 1 is breached, the first halt is triggered. If that point is reached before 2 p.m., the market would shut down for an hour. If threshold 1 is breached between 2 p.m. and 2:30 p.m., the halt will last 30 minutes. No trading stops will take place if threshold 1 is breached after 2:30 p.m.
If threshold 2 is breached before 1 p.m., the market would close for two hours. If such a decline took place between 1 p.m. and 2 p.m., there would be a one-hour pause. The market would close for the day if stocks sank to that level after 2 p.m.
In the event where threshold 3 is breached, the market would close for the day, regardless of the time.
The thresholds are computed at the beginning of each quarter to establish a specific point value for the quarter.
For the first quarter of 2009, threshold 1 is 850 points, threshold 2 is 1700 points, and threshold 3 is 2600 points.
The rules would halt trading on the major securities and futures exchanges in a coordinated cross-market halt if the circuit breaker is enacted.
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