Circuit Breakers Get Tightening
Traders Magazine, July 2012
They have only triggered twice in the past 24 years and may not trigger often in the next 24. The mechanism that shuts down the market in the event of a calamitous drop in prices was recently updated for the electronic age. In May, the Securities and Exchange Commission approved a plan by the nation's exchanges to lower the trigger from a 10 percent drop in the Dow Jones Industrial Average to a 7 percent drop in the S&P 500 Index.
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