Circuit-breaker points represent the thresholds at which trading is halted market wide for single-day declines in the Dow Jones Industrial Average.
The 10-, 20- and 30-percent decline levels, respectively, in the DJIA will be as follows:
- An 800-point drop in the DJIA before 2 p.m. will halt trading for one hour; for 30 minutes if between 2 p.m. and 2:30 p.m.; and have no effect if at 2:30 p.m. or later.
- A 1,650-point drop in the DJIA before 1 p.m. will halt trading for two hours; for one hour if between 1 p.m. and 2 p.m.; and for the remainder of the day if at 2 p.m. or later.
- A 2,450-point drop will halt trading for the remainder of the day regardless of when the decline occurs.
Trading-collars will be implemented as follows:
- A decline in the DJIA of 160 points or more will require all index-arbitrage sell orders of the S&P 500 stocks to be stabilizing, or sell plus, for the remainder of the day, unless on the same trading day, the DJIA advances 80 points or less below its previous day's close.
- An advance in the DJIA of 160 points will require all index-arbitrage buy orders of the S&P 500 stocks to be stabilizing, or buy minus, for the remainder of the day, unless the DJIA retreats to 80 points or less above its previous day's close.
- The restrictions will be re-imposed each time the DJIA advances or declines 160 points from its previous day's close.
The revised collars are also calculated quarterly, as 2 percent of the average closing value of the DJIA for the last month of the previous quarter, rounded down to the nearest 10 points. They are removed when the DJIA advances or retreats from the prior day's close to less than or equal to half of the 2 percent value, rounded down to the nearest 10 points.
