AMEX members and member organizations have been previously informed of revised procedures under AMEX Rule 117 relating to "circuit breaker" trading halts following a specified decline in the Dow Jones Industrial Average* ("DJIA"), (See Information Circular #98-0431, April 14, 1998). Circuit breaker trigger levels are based on one-day declines in the DJIA of 10 percent, 20 percent and 30 percent. The specific 10-, 20- and 30-percent trigger values are calculated at the beginning of each calendar quarter, using the average DJIA closing value for the month prior to the beginning of the quarter. Each trigger is rounded to the nearest 50 points. For the period extending from January 2, 2003 to March 31, 2003, the 10-, 20- and 30-percent trigger values are 850, 1,700 and 2,550 points, respectively.
If the 10-percent trigger value is reached, circuit breakers will operate as follows:
If the 20 percent value point is reached circuit breakers will operate as follows:
- a 10-percent decline in the DJIA before 2 p.m. (Eastern time) will result in a one-hour halt;
- a 10-percent decline in the DJIA between 2 p.m. and 2:30 p.m. will result in a 30-minute halt;
- after 2:30 p.m., the 10-percent threshold will be removed. Thus, if the DJIA declines 10 percent after 2:30 p.m., the market remains open, unless the 20-percent trigger is reached, at which time the market will close for the day.
If the 30-percent trigger value is reached at any time during the trading day, all trading on the Exchange will halt and not reopen for the remainder of the day.
- a 20-percent decline in the DJIA before 1 p.m. will result in a two-hour halt;
- a 20-percent decline in the DJIA between 1 p.m. and 2 p.m. will result in a one-hour halt;
- a 20-percent decline in the DJIA after 2 p.m. will close the market for the day
Questions regarding this circular may be directed to David Fisch at 212-306-1450, Laurence McDonald at 212-306-1865, Lauren Brophy at 212-306-1859 or Arne Michelson at 212-306-1860.