Anonymous ID: 09308a Sept. 23, 2022, 9:01 a.m. No.17567069   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun

Market-Wide Circuit Breakers โ€“ The securities and futures exchanges have procedures for coordinated cross-market trading halts if a severe market price decline reaches levels that may exhaust market liquidity. These procedures, known as market-wide circuit breakers, may halt trading temporarily or, under extreme circumstances, close the markets before the normal close of the trading session.

 

Market-wide circuit breakers provide for cross-market trading halts during a severe market decline as measured by a single-day decrease in the S&P 500 Index. A cross-market trading halt can be triggered at three circuit breaker thresholdsโ€”7% (Level 1), 13% (Level 2), and 20% (Level 3). These triggers are set by the markets at point levels that are calculated daily based on the prior dayโ€™s closing price of the S&P 500 Index.

 

A market decline that triggers a Level 1 or Level 2 circuit breaker before 3:25 p.m. will halt market-wide trading for 15 minutes, while a similar market decline โ€œat or afterโ€ 3:25 p.m. will not halt market-wide trading. A market decline that triggers a Level 3 circuit breaker, at any time during the trading day, will halt market-wide trading for the remainder of the trading day.

 

https://www.investor.gov/introduction-investing/investing-basics/glossary/stock-market-circuit-breakers