Circuit-Breakers

In the aftermath of the 1987 Stock market crash, the US stock exchanges introduced so called Circuit-Breakers, to stop automated selling at some point and to try to force people to THINK during the time, they could not trade.

Now, 1 day after the biggest fall of the Dow on a first trading day of the year, I read in the WSJ the new rules for Circuit Breakers on the NYSE (for Q1 2008) … Hmmmm

OK … No I am WORRIED …

Since November 2007, they REMOVED the Program Trading Stop …

and the levels for stopping trading … at least temporarily are now:

1350 … 2700 … and 4000 points (all levels obviously DOW measures) … 4000? Now, I am worried.

Tags: circuit-breakers, crash, NYSE

This entry was posted on Donnerstag, Januar 3rd, 2008 at 23:09 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.