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Looser circuit breakers?
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December 3, 1997: 9:52 p.m. ET
NYSE expected to unveil plans Thursday to ease circuit breakers
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NEW YORK (CNN) -- The New York Stock Exchange is expected Thursday to consider changing the circuit breakers put in place after the 1987 stock-market crash, sources have told CNNfn.
Under the new plan, the trading curbs will be based on percentages, not points.
Currently, the circuit breakers halt trading for 30 minutes when the Dow industrials decline 350 points, then for one hour at a 550-point loss for the day.
The new curbs will be based on percentages of the average closing level of the Dow industrials from the month of December each year.
If the plan is approved, the first halt in trading would occur for 30 minutes when the Dow industrials fall 10 percent of that average December close. A second halt of 60 minutes would occur when the Dow has dropped 20 percent of that level.
It remains unclear whether existing program-trading curbs that kick in when the Dow moves 50 points in either direction will be changed.
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