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NYSE Updates Q2 Circuit Breakers: All Day Halt If Dow Tumbles 4,350

Tyler Durden's picture




 

According to the updated NYSE Q2 circuit breaker levels, it will take a 4,350 point drop in the NYSE for an all day trading halt. Of course, if the DJIA tumbles by 30% intraday, whether to close the several hundred shares trading on the NYSE will be the last thing on people's minds.

From NYSE:

The New York Stock Exchange will implement new circuit-breaker collar trigger levels for second-quarter 2013 effective Monday, April 1, 2013.
 
Circuit-breaker points represent the thresholds at which trading is halted marketwide for single-day declines in the Dow Jones Industrial Average (DJIA). Circuit-breaker levels are set quarterly as 10, 20 and 30 percent of the DJIA average closing values of the previous month, rounded to the nearest 50 points.
 
In second-quarter 2013, the 10-, 20- and 30-percent decline levels, respectively, in the DJIA will be as follows:
 
Level 1 Halt

A 1,450-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 unless there is a level 2 halt.
 
Level 2 Halt

A 2,900-point drop in the DJIA before 1:00 p.m. will halt trading for two hours; for one hour if between 1:00 p.m. and 2:00 p.m.; and for the remainder of the day if at 2:00 p.m. or later.
 
Level 3 Halt

A 4,350-point drop will halt trading for the remainder of the day regardless of when the decline occurs.

 

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Mon, 04/01/2013 - 09:11 | 3395509 francis_sawyer
francis_sawyer's picture

I'll take that as a prediction...

Mon, 04/01/2013 - 09:19 | 3395539 Croesus
Croesus's picture

Amen to that.....

Mon, 04/01/2013 - 09:23 | 3395546 GetZeeGold
GetZeeGold's picture

 

 

I wouldn't have even brought it up.....but good to know.

Mon, 04/01/2013 - 09:23 | 3395547 Popo
Popo's picture

So much for free markets.  (As if they weren't already long dead).

Mon, 04/01/2013 - 10:45 | 3395764 Disenchanted
Disenchanted's picture

Exactly...Does a real 'free market' have "halts?"

 

Mon, 04/01/2013 - 10:55 | 3395809 oleander garch
oleander garch's picture

What is this 'market' of which you speak?

Efficient Market theory: Disproofs:

1) Market Circuit Breakers

Mon, 04/01/2013 - 09:41 | 3395600 monkeyboy
monkeyboy's picture

Most definitely bullish

Mon, 04/01/2013 - 09:11 | 3395510 1835jackson
1835jackson's picture

Drop? What's a drop?

Mon, 04/01/2013 - 09:16 | 3395524 SheepDog-One
SheepDog-One's picture

It's one of those things that happens from time to time right when everyone is convinced it can't happen again.

Mon, 04/01/2013 - 09:19 | 3395537 1835jackson
1835jackson's picture

Yeah I was joking. The whole thing is a racket. The markets are a game by rich people for rich people. When it is all said and done this world is fucked. War drums beating louder etc. Just a massive cluster fuck coming our way soon. Can't wait for Jesus to come back.

Mon, 04/01/2013 - 09:21 | 3395544 SheepDog-One
SheepDog-One's picture

Oh I know, I'm just being sarcastic too.

Mon, 04/01/2013 - 09:23 | 3395545 Dr. Richard Head
Dr. Richard Head's picture

Stupid, but honest question.  Why is it that drops get trade halts at certain percentages, but not a rise?  I know, I know, they don't want to see drop, but what is the regulation rational behind only halting trading after drops?  If the answer is to smooth out the market, the same should hold true for 10%, 20%, or 30% increases too?  No?

Mon, 04/01/2013 - 09:26 | 3395557 the not so migh...
the not so mighty maximiza's picture

Its how casinos operate, if your winning to much they ask you to leave, if your loosing though, they never ask you to leave.

Mon, 04/01/2013 - 09:26 | 3395560 SheepDog-One
SheepDog-One's picture

When the Wall St's pirate ships sails are full of wind, it's all about singing sea chanties and passing around the rum! Smooth sailin!

Mon, 04/01/2013 - 09:17 | 3395532 Stoploss
Stoploss's picture

Hey, when all you have is HFT you needs them circuit breakers!!

Beef 'em up!!

 

Im sure there's a 200K power cable that needs replacing from Sandy, or some shit like that,

if the tools used to replace it haven't been banned already..

Mon, 04/01/2013 - 09:18 | 3395535 CheapBastard
CheapBastard's picture

We're banned from saying those four letter words (like "d-r-o-p") on TV anymore. Orders from above.

Mon, 04/01/2013 - 09:20 | 3395540 Ljoot
Ljoot's picture

Well a good example would be the silver chart.

 

Mon, 04/01/2013 - 09:23 | 3395552 forwardho
forwardho's picture

Lj,  Dude thats just plain cold.

Mon, 04/01/2013 - 09:23 | 3395549 fonzannoon
fonzannoon's picture

It's legit. The first halt gives the dark pools a chance to get all their orders through before they re open and head to zero.

Mon, 04/01/2013 - 10:41 | 3395754 booboo
booboo's picture

Just some pre game last minute instructions like "no biting, kicking, scratching, ball sack punches" prior to a fight, or in case of fire fire exits will be blocked by bodies piled up in front of the In swinging doors, White Snake tickets go on sale soon.

Mon, 04/01/2013 - 11:36 | 3396002 Sweet Chicken
Sweet Chicken's picture

HAHA it was Great White but point made! :)

Mon, 04/01/2013 - 09:12 | 3395511 Ivanovich
Ivanovich's picture

The day the DOW falls over 4000 points is the day when you see bankers bing dragged through the streets. 

 

I hope I have a front row seat to the festivities.

Mon, 04/01/2013 - 09:23 | 3395548 Edward Fiatski
Edward Fiatski's picture

There are going to be tanks in the streets!

Along with a massive cock up the ass, the general populace will swallow another TARP^Squared.

Mon, 04/01/2013 - 09:13 | 3395514 the not so migh...
the not so mighty maximiza's picture

with 85 bil a month at least, we don't need to worry.

Mon, 04/01/2013 - 09:13 | 3395515 razorthin
razorthin's picture

NYSE - the new preppers.

Mon, 04/01/2013 - 09:15 | 3395518 SheepDog-One
SheepDog-One's picture

How much of a drop needed to halt bank accounts? 

 

Mon, 04/01/2013 - 09:16 | 3395527 razorthin
razorthin's picture

If by halt you mean confiscate, none.

Mon, 04/01/2013 - 09:23 | 3395519 TeamDepends
TeamDepends's picture

How will this affect the Plunge Protection Team?  Are they out of a job?

Mon, 04/01/2013 - 10:05 | 3395661 ParkAveFlasher
ParkAveFlasher's picture

Technology is a bitch.  A janitor with his hand on a big red lever and an eye on the ticker board just made them obsolete.

Then again, you have to be useful in the first place in order to be obsolete, by definition.  So all is not lost. 

Mon, 04/01/2013 - 09:19 | 3395536 Edward Fiatski
Edward Fiatski's picture

Deja Vu.

Confirmation.

Have a nice day.

:)

Mon, 04/01/2013 - 09:21 | 3395542 SheepDog-One
SheepDog-One's picture

A 4,350 point drop would mean there's also mushroom clouds over major U.S. cities so the last thing anyone would be worrying about is whether they can trade a stawk.

Mon, 04/01/2013 - 09:24 | 3395551 SheepDog-One
SheepDog-One's picture

All they were worried about on the Sunday morning 'highly intellectual D.C. reporter' shows was gay marriage.

Mon, 04/01/2013 - 09:28 | 3395571 new game
new game's picture

hershey ally, yummy and licks for free...

Mon, 04/01/2013 - 09:24 | 3395553 GTO
GTO's picture

April Fool's ?????

Mon, 04/01/2013 - 09:27 | 3395561 new game
new game's picture

long shrooooooooooooooooooooooms!

Mon, 04/01/2013 - 09:30 | 3395575 the not so migh...
the not so mighty maximiza's picture

psycotropic ones or radioactive ones?

 

Mon, 04/01/2013 - 09:29 | 3395570 buzzsaw99
buzzsaw99's picture

The only way that will ever happen is if the bankers want to extort congress again. Otherwise there is no market to even make that happen.

Mon, 04/01/2013 - 09:29 | 3395574 IamtheREALmario
IamtheREALmario's picture

Let's see what happens when China stops accepting the dollar.

Mon, 04/01/2013 - 09:38 | 3395593 buzzsaw99
buzzsaw99's picture

yeah, right.

Mon, 04/01/2013 - 09:41 | 3395599 Ribeye
Ribeye's picture

Thought Criminal,

Mon, 04/01/2013 - 09:29 | 3395576 HulkHogan
HulkHogan's picture

"effective Monday, April 1, 2013."

April Fools!

The market is not allowed to drop.

Mon, 04/01/2013 - 11:02 | 3395841 OldmanRick1
OldmanRick1's picture

That is correct. The anointed one decreed it so.

Mon, 04/01/2013 - 09:30 | 3395578 q99x2
q99x2's picture

Is there an upside breaker? Algos ain't got brains and it is possible to advance 1000s of points per second.

Mon, 04/01/2013 - 09:31 | 3395579 new game
new game's picture

with cash equel to debt in 401's and 3's i would be just tad concerned...

Mon, 04/01/2013 - 09:31 | 3395580 forwardho
forwardho's picture

 Wow, the index can now drop about 1/3rd of it's value before halt.

Just think of what one could realize with a few timely puts.

Assuming of course you had advanced warning.

 

Mon, 04/01/2013 - 09:35 | 3395585 orangegeek
orangegeek's picture

Oh gee, the Dow has climbed over 11% in three months.  Who would think that a crash is pending?

 

http://bullandbearmash.com/chart/dow-jones-daily-falls-120-points-minute...

 

The first threshold drop still keeps us positive for the year.  What a joke.

Mon, 04/01/2013 - 09:39 | 3395594 Ribeye
Ribeye's picture

My advice is to get your money out of the market and put it in a bank, where it's safe,

Wait, WHAT?

Mon, 04/01/2013 - 09:41 | 3395604 j8h9
j8h9's picture

Get yer money of the market by early MAY and yes put it in a safe, a gardall or amsec in your closet.

Mon, 04/01/2013 - 09:47 | 3395621 20-20 Hindsight
20-20 Hindsight's picture

"I'll take that as a prediction..."

---

or a warning?

Mon, 04/01/2013 - 09:51 | 3395628 pies_lancuchowy
pies_lancuchowy's picture

ZeroHedge sheeple still unanimously expect a DROP ? LMAO !

Sheeple got wiped out being short stocks and long gold? LMAO!

Listen what, sheeple. Those circuit breakers are supposed to mitigate the EUPHORIA which is imminent because of the infinite wisdom of our regulators and Government beaurocrats.

 

 

 

 

 

 

 

 

 

 

 

April Fool...

Mon, 04/01/2013 - 10:01 | 3395656 rsnoble
rsnoble's picture

Don't forget what happened in 2008 after they removed the 'uptick' rule.   The only reason for a 4350pt halt is so GS can make a boatload of $ fucking everyone on the short side.

This falls into the category of never letting a good crisis good to waste.  And all our wonderful US politicians who aren't supposed to inside trade will surely be positioned for this as they are all so fucking smart.

Mon, 04/01/2013 - 10:08 | 3395667 GolfHatesMe
GolfHatesMe's picture

Now down 8, only 4342 to go

Mon, 04/01/2013 - 10:37 | 3395737 lolmao500
lolmao500's picture

That would be hilarious to see all the heads explode. But but but! Krugman and Bernanke said this couldn't happen!! Obama fixed the economy!!

/except the stock market is totally disconnected from the real state of the economy...

Mon, 04/01/2013 - 10:35 | 3395740 Edward Fiatski
Edward Fiatski's picture

ISM Manufacturing at 51.3 right on schedule.

Mon, 04/01/2013 - 11:06 | 3395864 OldmanRick1
OldmanRick1's picture

The SE will never fail. It has the backing of the Fed Reserve and the wallet of the US taxpayer.

Mon, 04/01/2013 - 11:11 | 3395888 optimator
optimator's picture

And certainly no curcuit breakers to the upside.

Mon, 04/01/2013 - 12:43 | 3396221 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Sounds like Bernanke is getting ready to increase interest rates on the Treasury Securities. I am not sure the exact translation but at a 1% increase in interest rates should drop the DJIA 2000+ HFT rigged trading market or not under the current monetary conditions.

If I was a gambling man, I'd be positioning for a drop right around the time the FED makes an announcement on policy. YMMV and do your own research before trading. Sounds like between this and the new strategy of going after large scale bank deposits aka those above insurance limits in Europe and soon to be coming here it looks like it is a way to corral short term savings into Treasuries which allows Bernanke to take the foot somewhat off the QE treasury buying accelerator pedal.

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