At what point does the market close early?

[briv1016]

If I remember my High School social studies there was a system put in place after the Great Depression whereby if the market fell too much in a single day, it closes early so that people would don't get too crazy. Does anyone know what the threshold is?

[Coyote_Bandit]

1. Delete

[Nite Owl]

2. Is this what you mean?

http://www.programtrading.com/DTC/curbs.htm


Program Trading "Circuit Breakers"
If the Dow Jones Industrial Average falls 10%, trading is halted on the New York Stock Exchange for 60 minutes. If the Dow Jones rallies 10%, there is no restriction. Why? Because program buying and the accompany rally is always perceived as "good".

If the Dow Jones Industrial Average falls 20%, trading is halted on the New York Stock Exchange for two hours. There is no trading halt if it rallies 20%, as that would be perceived as "very very good".

If the Dow Jones Industrial Average falls 30%, trading is halted on the New York Stock Exchange for the day. There is no trading halt if it rallies 30%, as that would be perceived as "the best thing that ever happened in the history of the world".

According to the NYSE the current 10, 20 and 30 percent decline levels, respectively, in the DJIA will be as follows: A 1,050 point drop in the DJIA will halt trading for one hour if the decline occurs before 2 p.m.; for 30 minutes if before 2:30 p.m.; and have no effect between 2:30 p.m. and 4 p.m. A 2,150 point drop will halt trading for two hours if the decline occurs before 1 p.m.; for one hour if before 2 p.m.; and for the remainder of the day if between 2 p.m. and 4 p.m. A 3,200 point drop will halt trading for the remainder of the day regardless of when the decline occurs. Point levels are set quarterly by using the DJIA average closing values of the previous month, rounded to the nearest 50 points. The percentage levels are adjusted quarterly on Jan. 1, April 1, July 1 and October 1.

[Javaman]

4. what gets me though, the dow has dropped almost 6000 points this past year yet

no hold is put on trading. It all has to happen on one day. LOL

[pitohui]

5. it's very odd because trading was halted so fast on 911

we are seeing a deeper and steeper decline but nothing is being done

they no longer care, they are boldly stealing our retirement and apparently there is nothing to be done

it used to be trading was halted at 400 points, what happened to that??????

by the time it has dropped 2,160 points in a day it is way too late, the damage is done!

[TheGambit]

3. This is when

http://www.sec.gov/answers/circuit.htm

[pitohui]

6. yeah but it doesn't really answer the question

they didn't wait for such a decline on sept 11 is the thing

it is clear to anyone who is not an idiot that there's a big problem here but they refuse to take action to stop the bleeding

guidelines are just that, guidelines, trading could be halted until things cooled off IF we had some leadership out for something besides itself

[Nite Owl]

7. Maybe on 911 a lot of traders

lives were lost. The markets also need connections. I lived on LI at the time and we had no computer connections for at least a week. People couldn't get into the city unless they were emergency crews, Red Cross etc.