NYSE Proposes Slight Rule Change on Halts to Trading
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The New York Stock Exchange on Thursday proposed modest changes to rules that halt trading when prices plunge, and delayed a more aggressive plan that would make the curbs harder to activate.
The proposal would keep the triggers for the curbs at drops of 350 points and 550 points in the Dow Jones industrial average, but it would make it more difficult for the circuit breakers to prematurely end the trading day.
The change requires and is expected to get quick approval from the Securities and Exchange Commission.
It would relax the circuit-breaker rules after 2 p.m. to make them less likely to halt trading early, as was the case Oct. 27, when the Dow fell 554 points, or 7.2%.
The NYSE is still studying a more intense plan to raise the threshold for trading halts to 10% and 20% drops in the Dow. At current market levels, that would be about 800 points and 1,600 points.
NYSE spokesman Robert Zito said the exchange hopes to make a recommendation on that plan by the first quarter of 1998.
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