zyzzyva57
03-01-2007, 07:15 AM
From Slate Magazine:
"...After the Dow Jones' initial drop Tuesday afternoon, the New York Stock Exchange implemented "trading curbs." What are those? Also called "circuit breakers," these are restrictions designed to keep people from trading large blocks of shares that might further destabilize the market.
"Curbs go into effect whenever the exchange's composite index rises or sinks 150 points beyond the previous day's closing price. During that time, "program trades"—defined by the NYSE as "the purchase or sale of 15 or more stocks having a total market value of $1 million or more"—are off limits.
"(You'll also see a little "Curbs In" icon at the bottom of the screen on CNBC.) The NYSE started imposing curbs after the "Black Monday" stock market crash of 1987, which many people blamed on program trading."
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Reference:
http://www.slate.com/id/2160841/fr/rss/
http://en.wikipedia.org/wiki/Market_maker
"...After the Dow Jones' initial drop Tuesday afternoon, the New York Stock Exchange implemented "trading curbs." What are those? Also called "circuit breakers," these are restrictions designed to keep people from trading large blocks of shares that might further destabilize the market.
"Curbs go into effect whenever the exchange's composite index rises or sinks 150 points beyond the previous day's closing price. During that time, "program trades"—defined by the NYSE as "the purchase or sale of 15 or more stocks having a total market value of $1 million or more"—are off limits.
"(You'll also see a little "Curbs In" icon at the bottom of the screen on CNBC.) The NYSE started imposing curbs after the "Black Monday" stock market crash of 1987, which many people blamed on program trading."
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Reference:
http://www.slate.com/id/2160841/fr/rss/
http://en.wikipedia.org/wiki/Market_maker