(January 3 – 12:30 ET) – The Toronto Stock Exchange has announced its circuit breaker levels for the first quarter of 2001.
It is TSE policy to co-ordinate with U.S. markets when circuit breakers are invoked. Circuit breaker trigger points are set at three fluctuating levels representing 10%, 20% and 30% of the Dow Jones Industrial Average.
Circuit breaker trigger points are calculated by the New York Stock Exchange at the beginning of each calendar quarter, using the average closing value of the Dow for the preceding month, rounded to the nearest 50 points.
The NYSE has announced that effective January 3, first quarter trading halts will be triggered when the Dow drops below its closing value on the previous trading day by:
- 1,050 points for a level 1 halt;
- 2,150 points drop for a level 2 stoppage; and
- 3,200 points for a level 3 halt.
A level 1 halt before 14:00 ET stops trading for one hour; between 14:00 and 14:30, it stops trading for only 30 minutes. After 14:30 a level 1 halt has no effect on trading.
A level 2 halt before 13:00 ET means a two-hour breather; between 13:00 and 14:00 it halts trading for one hour. After 14:00 a level 2 halt stops trading for the remainder of the day.
A level 3 halt means trading closes for the day no matter when it occurs.
-IE Staff