The New York Stock Exchange will implement new circuit-breaker collar trigger levels for first-quarter 2011 effective Monday, January 3, 2011.
Circuit-breaker points represent the thresholds at which trading is halted marketwide for single-day declines in the Dow Jones Industrial Average (DJIA). They are set quarterly as 10, 20 and 30 per cent of the DJIA average closing values of the previous month, rounded to the nearest 50 points.
In first-quarter 2011, the 10-, 20- and 30-per cent decline levels, respectively, in the DJIA will be as follows –
Level 1 Halt: A 1,150-point drop in the DJIA before 2 pm will halt trading for one hour; for 30 minutes if between 2 pm and 2:30 pm; and have no effect if at 2:30 pm or later unless there is a level 2 halt.
Level 2 Halt: A 2,300-point drop in the DJIA before 1:00 pm will halt trading for two hours; for one hour if between 1:00 pm and 2:00 pm; and for the remainder of the day if at 2:00 pm or later.
Level 3 Halt: A 3,450-point drop will halt trading for the remainder of the day regardless of when the decline occurs.
Circuit-breaker percentage levels were first implemented in April 1998 and the point levels are adjusted on the first trading day of each quarter. In 2011, those dates will be January 3, April 1, July 1 and October 3.
