The New York Stock Exchange (NYSE:NYX) set more stringent circuit-breaker thresholds for the fourth quarter of 2011. Thresholds were previously set in 1998 at 10%, 20%, and 30% declines in the Dow Jones Industrial Average, however, these limits were still far out of reach during the May 2010 market plunge, leading the security regulators to impose lower limits.
The first circuit breaker will now be reached after a 7% decline rather than 10%. Beginning Monday, trading will also be stopped for varying lengths of time during the business day after 1,100, 2,500, and 3,350 point declines.
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