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Circuit Breaker |
Benzinga
Apr 18
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(c) 2012 Benzinga.com. All rights reserved. This material may not be published in its entirety or redistributed without the approval of Benzinga.
Wall Street Journal
Mar 23
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Apple shares are trading back to normal after a pretty wild couple of minutes.
The Straits Times
Feb 12
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THE wild price swings of some penny counters last week, as they roared back to life after a five-year hiatus, have rekindled the debate on the need for measures to calm stock market volatility.
Benzinga
Feb 6
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(c) 2011 Benzinga.com. All rights reserved. This material may not be published in its entirety or redistributed without the approval of Benzinga.
Benzinga
Jan 26
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(c) 2011 Benzinga.com. All rights reserved. This material may not be published in its entirety or redistributed without the approval of Benzinga.
Benzinga
Jan 24
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(c) 2011 Benzinga.com. All rights reserved. This material may not be published in its entirety or redistributed without the approval of Benzinga.
StreetInsider.com
Jan 17
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Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Ku6+%28KUTV%29+Shares+Haltd+on+Circuit+Breaker+Up+192%25+Following+Deal+with+YouTube/7085671.html for the full story.
Forbes
Dec 28
Comment
Goldman Sachs has been forced to rethink its business model, with the investment bank coming under fire from regulators of late.
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more ▼WIKI ANALYSIS
WIKI ANALYSIS| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
TOP CONTRIBUTORS
A circuit breaker, also known as a trading curb or collar, is a mechanism to restrict program trading on an exchange for a specified period of time when the market moves up or down by a large number of points during a trading day. This mechanism was put in place after program trading was blamed for the crash of 1987, also known as Black Monday. The ideas is that circuit breakers will limit market damage by restricting trading activities that might lead to greater volatility and encourage those that lead to greater stabilization. Although circuit breakers are triggered by upward movements in the market, in recent times, most have been triggered by downward market movements.
Example(s)
New York Stock Exchange
- 10% or 1,100 point decline: The first circuit breaker is triggered if the Dow Jones Industrial Average declines by approximately 10%. Subsequent restrictions, if any, depend on the time of day when the circuit breaker is triggered. If the trigger occurs before 14.00 hrs (EST), trading is halted for 1 hour. If the trigger occurs between 14.00 and 14.30 hrs (EST), trading is halted for 30 minutes. If the trigger occurs after 14.30 hrs (EST), no restrictions are put into place. There are no similar restrictions in place for a 10% rally in the Dow Jones Industrial Average.[1]
- 20% or 2,200 point decline: The second circuit breaker is triggered if the Dow Jones Industrial Average declines by approximately 20%. Subsequent restrications, again, depend on the time of day when the circuit breaker is triggered. If the trigger occurs before 13.00 hrs (EST), trading is halted for 2 hours. If the trigger occurs between 13.00 and 14.00 hrs (EST), trading is halted for 1 hour. If the trigger occurs after 14.00 hrs (EST), trading is ended for the day. There are no similar restrictions in place for a 20% rally in the Dow Jones Industrial Average.[1]
- 30% or 3,350 points decline: The third circuit breaker is triggered if the Dow Jones Industrial Average declines by approximately 30%. Under these circumstances, the New York Stock Exchange closes early that day. There are no similar restrictions in place for a 30% rally in the Dow Jones Industrial Average.[1]
References
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