NYSE invokes rule for market open due to volatility

NEW YORK, Aug 8 (Reuters) - The New York Stock Exchange and
NYSE Amex Cash Markets on Monday invoked a rule to smooth
trading at the market open, as futures pointed to a drop of
more than 2 percent.

Rule 48 allows the exchange to suspend price indications
that help determine the floor price at the open during regular
sessions. Bypassing the requirement helps speed the beginning
of trading.

Among the triggers for invoking the rule are "substantial
activity in the futures market before the open," according to
the exchange's website.

S&P 500 futures SPc1 fell 28.2 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration of the
contract. Dow Jones industrial average futures DJc1 lost 248
points and Nasdaq 100 futures NDc1 dropped 48.75 points.
(Editing by Jeffrey Benkoe)