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Business Times - Singapore
Oct 25
Comment
THE recent circumstances surrounding UOB-Kay Hian's imposition of trading curbs on the shares of life sciences firm Transcu Group, which precipitated a collapse of those shares, raises a few important regulatory issues for the authorities to ponder.
Business Times - Singapore
Oct 23
Comment
TRADING restrictions on penny stocks this week forced punters to switch their attention to blue chips, while throughout the five days, the fate of the Straits Times Index was determined by anticipation of how Wall Street might perform in the...
Mondo Visione
Oct 23
Comment
Circuit breaker (CB) is as below, after 12:30 p.m. (JST) on October 23 (today).
Commodity : Rubber
Contract Month : All contract months
CB Trigger Level : + JPY 30 based on the settlement price of the previous clearing...
Business Times - Singapore
Oct 21
Comment
HIGH trading volumes coupled with 'rapid and inexplicable' price jumps by shares of Transcu Group over the past seven days prompted UOB-Kay Hian to restrict trading on the stock, a source familiar with the matter told BT yesterday.
Business Times - Singapore
Oct 20
Comment
THE wind was knocked out of the stock of bio-medical company Transcu Group yesterday as talk of a trading restriction by UOB-Kay Hian - which has since been imposed - ignited a heavy dumping of its shares, sources told BT.
Mondo Visione
Sep 30
Comment
The New York Stock Exchange will implement new circuit-breaker collar trigger levels for third-quarter 2009 effective Thursday, Oct. 1, 2009.
Wall Street Journal
Jul 29
Comment
The CFTC's chief said the agency must "seriously consider" setting strict limits on the bets of energy traders.
Wall Street Journal
Jul 28
Comment
The CFTC's chief said the agency must "seriously consider" setting strict limits on the bets of energy traders.
Resource Investor
Jul 14
Comment
The stock market appears to be reacting to odd mechinations as this week gets tarted, while commodity remain tentative.
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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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