NYSE Circuit Breakers

Given another decline of nearly seven hundred points at the open Friday, it's a good idea to review the circuit breaker rules on the New York Stock Exchange.  While we often hear that it takes a 10% decline for the first round of breakers to kick in, the numbers are actually set at the beginning of each quarter.  At the start of this quarter, the Dow was at 11,000, setting the threshold for the first circuit breaker at 1,100 points. 

However, based on Thursday's close of 8,579, the Dow would need to fall 13% in order for the first round of circuit breakers to kick in.  For the second round of circuit breakers to kick in, we would have to have a decline of 26%.

click to enlarge

Comments

[Roger Knouse:]

NYSE Circuit Breakers are a joke without Trading Collars:
NYSE ELIMINATION OF RULE 80A EFFECTIVE
NOVEMBER 2, 2007

2008 Oct 13 10:26 AM

[john s. gordon:]

restore the uptick rule.
> jack

2008 Oct 13 11:51 AM