HUH?

Whats a stop gap? isnt that what I think it is??

The broadbase must be sinking

-- D.B. (dciinc@aol.com), October 12, 1999

Answers

Could be wrong but I think it is a time out to keep it from falling too far too fast, say 30 minutes of no trading.

-- goldbug (goldbug@mint.com), October 12, 1999.

- @ 230? cnnfn

Computerized halts when plunge plummets?

-- A & L (allaha@earthlink.net), October 12, 1999.

CURBS are put into the market whenever it falls 210 point in one trading session. We don't want a repeat of 1987 do we???

-- y2k dave (xsdaa111@hotmail.com), October 12, 1999.

Gee, if they set trading curbs to kick in whenever the Dow dropped even 20 points, just think how much happier the sheeple would find themselves?

Every night, the worst thing we would hear is "the Dow dropped 20 points today in heavy trading."

-- Paul Hepperla (paulhep@terracom.net), October 12, 1999.

I think not. UNLESS we're discussing a 5% drop and the curb on "Computer Trades". Only problem is that 230 ain't even CLOSE to 5% of 10,600. It's only 2%+ a bit.

the circuit breakers are at 10% (of the previous Quarter End Close), 20% and 30%.

IIRC It works like this:

10% gets a 30 min cooling off period if it's more than 30 min til close, if not close for the day

20% gets a 1 Hr cooling period if in AM, and/or if before 1500 (3PM). If after 1500 close for the day.

30% get's half a day (if before 1100) and close for the day if after 1200 or thereabouts.

FEEL FREE TO CORRECT THIS!! But this is about where it sits.

chuck

-- Chuck, a night driver (rienzoo@en.com), October 12, 1999.

And:

They put computer trading curbs in place

AND: This FROM THE HORSE'S MOUTH: (at http://www.sec.gov/news/press/98-37.txt)

FOR IMMEDIATE RELEASE 98-37

Securities and Exchange Commission Approves New Circuit Breaker Levels

Washington, D.C., April 10, 1998 -- The Securities and Exchange Commission late yesterday approved new circuit breaker trigger levels for one-day declines in the Dow Jones Industrial Average (Dow) of 10%, 20% and 30%. The new levels, which go into effect April 15, 1998, were proposed by the securities exchanges and the NASD to modify their rules regarding coordinated, cross-market trading halts during periods of extraordinary market volatility.

The new trigger levels will be converted into point values at the beginning of each calendar quarter, using the average closing value of the Dow for the previous month. The new levels also better reflect the original intent of the circuit breakers: that they only be triggered during a severe one day decline of historic proportions. The Commodities Future Trading Commission also approved substantively identical rules for the stock index futures markets.

The rule changes also modify the late-in-the-day trading halt procedures for circuit breakers.

Ten Percent Decline: The halt for a 10% decline will be one hour if triggered before 2:00 p.m. EST. At or after 2:00 p.m. EST but before 2:30 p.m. EST, the halt will be for one-half hour. At or after 2:30 p.m. EST, the market will not halt at the 10% level and will continue trading.

Twenty Percent Decline: The halt for a 20% decline will be two hours if triggered before 1:00 p.m. EST. At or after 1:00 p.m. EST but before 2:00 p.m. EST, the halt will be for one hour. If the 20% trigger value is reached at or after 2:00 p.m. EST, trading will halt for the remainder of the day.

Thirty Percent Decline: If the market declines by 30%, at any time, trading will be halted for the remainder of the day.

Previously, the circuit breakers were triggered when the Dow Jones Industrial Average declined 350 points (thirty minute halt) and 550 points (one hour halt) from the previous day's close. # # #


CHuck

-- Chuck, a night driver (rienzoo@en.com), October 12, 1999.

---

The Dow will crash in two more days!!

BaaaaaaBaaaaaaa Wheres all my money gone to. Baaaaa Baaaaaa. Give me my money baaaaaacck. Baaaaaa Baaaaaa Can I have a gunn? Baaaaaa Baaaaa. Can I have green eggs and ham? Baaaaaa Baaaaa. I know you took care of that y/two/k stuff. Baaaaaaaa Baaaaaaaaa. Everythings gona be OK. If I don't think about it, it'll go away. Baaaaaaaa Baaaaaaaa. Hear no evil, seee no evil, speak no evil. So there is no evil. Baaaaa Baaaaaa.

Stay out of Mr. Clintoons bedroom. He didn't do anything wrong. Baaaaa Baaaaa.

All those merdered people around our honest leader was just a quincidence. Baaaaa Baaaaaa. The market won't crash. They won't let it. Baaaaaa Baaaaaaaa

-- Dow Crash and all the sheeple went BAAAAAA (Dow@crash.in2moredays), October 12, 1999.

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Hi, Dave--- Just saw this Reuters article you posted on another thread. Do you have a link for this? Thanks!

(Reuters) - The New York Stock Exchange said it imposed program trading curbs in late Tuesday after the Dow Jones industrial average lost more than 214 points amid concern about earnings and interest rates.

The Dow was down 209 points or 1.96 percent, at 10,439.

The exchange imposes curbs whenever the Dow rises or fall 210 points.

Analysts said investors stepped up their selling on fears that some companies will fail to meet Wall Street's unusually high expectations for third quarter earnings.

``I think we have seen in the past couple of years expectations being surpassed so often that the expectations themselves become very unrealistic,'' said Peggy Farley, president of Ascent/Meredith Asset Management Inc.

The Nasdaq Composite index lost 43 points, or 1.49 percent, at 2,872, a day after posting a record close of 2,915.

The Standard & Poor's 500 index was down 23 points, or 1.73 percent, at 1,312. Reut15:52 10-12-99

-- y2k dave (xsdaa111@hotmail.com), October 12, 1999.

-- (RUOK@yesiam.com), October 12, 1999.

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They can stop the trading all they want because the inevitable will eventually happen. Hope you all have bailed out of the market.

-- out of it (outofit@outofittt.xcom), October 12, 1999.

---

Closing the unclosed blockquote.

-- - (johndoe02@hotmail.com), October 12, 1999.

OOPS 40 lashes for the distracted SYSOP!!

Sorry.

CHuck

-- Chuck, a night driver (rienzoo@en.com), October 12, 1999.

Trading curbs do not change the market's
desire to reach equilibrium. (Or the price at which equilibrium is reached)

They only impede the speed at which equilibrium is reached.

-- Berry Picker (BerryPicking@yahoo.com), October 12, 1999.

You are right berry picker. Gives the heavyweights a little time to decide what their next move is going to be without the harassment of the "little guys."

-- Jim the Window Washer (Rational@man.com), October 12, 1999.

Collars (aka 'Trading Curbs') and Circuit Breakers defined

Trading continues under a collar. Trading is suspended under a circuit breaker.

-- Tom Carey (tomcarey@mindspring.com), October 13, 1999.

In the words of my dear, departed father:

"Aw, shit!"

-- Arewyn (isitthatlate@lready.com), October 13, 1999.