Market Halts
The NYSE may halt all trading if the Dow Jones Industrial Average (DJIA) falls by a sufficiently large percentage. Depending on how much the DJIA falls by and when it does so, trading may be halted as follows:
- • Level 1 Halt – a 10% drop in the DJIA before 2:00 PM (Eastern Time) will halt trading for one hour; for 30 minutes if between 2 PM and 2:30 PM (Eastern Time); and have no effect if at 2:30 PM (Eastern Time) or later.
- • Level 2 Halt – a 20% drop in the DJIA before 1:00 PM (Eastern Time) will halt trading for two hours; for one hour if between 1:00 PM and 2:00 PM (Eastern Time); and for the remainder of the day if at 2:00 PM (Eastern Time) or later.
- • Level 3 Halt – a 30% drop in the DJIA will halt trading for the remainder of the day regardless of when the decline occurs.
At the SEC’s request, Nasdaq may halt all domestic trading in Nasdaq-traded securities in response to extraordinary market conditions.
|
Halt Level |
Level 1 |
Level 2 |
Level 3 |
|
DJIA drops |