The New York Stock Exchange has announced “circuit breaker” levels for the fourth quarter. The circuit breaker trigger points are set at three fluctuating levels representing 10%, 20% and 30% of the Dow Jones industrial average.

Trading halts will be triggered when the DJIA declines below its closing value on the previous trading day. The new circuit breakers are effective October 1.

A Level 1 (10%) halt will be triggered when the DJIA declines by 900 points. The trigger for a Level 2 (20%) halt is 1,800 points, while a decline of 2,700 points triggers a Level 3 (30%) halt.

A Level 1 halt issued before 14:00 ET lasts one hour. After 14:00 ET but before 14:30 ET, a Level 1 halt lasts 30 minutes. After 14:30 ET trading continues, unless there is a Level 2 halt.

A Level 2 halt triggered before 13:00 ET lasts two hours. After 13:00 ET but before 14:00, it lasts one hour. After 14:00 ET, trading halts and does not resume for the remainder of the day.

When a Level 3 halt is triggered, trading halts immediately and not does resume for the remainder of the day.

It is the policy of the Toronto Stock Exchange to co-ordinate with U.S. markets when circuit breakers are invoked.

The levels are calculated by the NYSE at the beginning of each calendar quarter, using the average closing value of the DJIA for the preceding month. Each trigger is rounded to the nearest 50 points.