Circuit-breaker
points represent the thresholds at which trading is halted market-wide for single-day declines in the S&P 500 Index. Circuit breakers halt trading on the nation's stock markets during dramatic drops and are set at 7%, 13%, and 20% of the closing price for the previous day. The circuit breakers are calculated daily.
Level 1 halt (7%)
Trading will halt for 15 minutes if drop occurs before 3:25 p.m.
At or after 3:25 p.m.—trading shall continue, unless there is a Level 3 halt.
Level 2 halt (13%)
Trading will halt for 15 minutes if drop occurs before 3:25 p.m.
At or after 3:25 p.m.—trading shall continue, unless there is a Level 3 halt.
Level 3 halt (20%)
At any time during the trading day—trading shall halt for the remainder of the trading day.
The SEC implemented a new marketplace rule, known as the
Limit Up /
Limit Down Rule (
LULD), designed to prevent trades from executing outside of price bands established throughout the day for individual stocks and exchange-traded funds (
ETFs).
