US STOCKS-NYSE says trading curbs rule is history
NEW YORK, Nov 7 (Reuters) - The New York Stock Exchange has scrapped its trading curbs rule as of Nov. 2, a spokeswoman said on Wednesday.
In an advisory sent to heads of equity trading desks and chief compliance officers, the exchange said the rule was no longer effective in curbing market volatility.
The rescission of Rule 80A, which addressed a type of trading strategy known as index arbitrage, has no effect on the circuit breakers in Rule 80B or trading halts due to extraordinary market volatility.
For the current quarter, circuit breakers will kick in if there is a drop of 1,350 points, or 10 percent, in the Dow Jones industrial average .DJI.
There will be a one-hour halt in trading if the drop happens before 2 p.m., a 30-minute halt if the decline occurs between 2 p.m. and 2.30 p.m., and no halt after 2.30 p.m., according to the NYSE.
If the Dow drops 2,700 points or 20 percent, there will be a two-hour halt if it happens before 1 p.m., a one-hour halt if the slide occurs between 1 p.m. and 2 p.m. and the market will close if the slide happens after 2 p.m.
A plunge of 4,050 points or 30 percent -- regardless of the time it occurs -- would result in the market being closed for the day. (Reporting by Ellis Mnyandu; Editing by Jan Paschal)
