This Day In Market History: NYSE Sets New Circuit Breaker Trigger Levels

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened: On April 15, 1998, the New York Stock Exchange adjusted its circuit breaker standards to trigger halts after a 10% decline.

Where The Market Was: The S&P 500 finished the day at 1,119.32, and the Dow Jones Industrial Average closed at 9,162.27.

What Else Was Going On In The World: A few days later, the Indianapolis Colts would snag Tennessee quarterback Peyton Manning as the first pick of the NFL draft. Disney World’s Animal Kingdom would open shortly after.

NYSE Implements New Circuit Breaker Standards: Before the SEC approved today’s rules, a 350-point decline in the Dow triggered a 30-minute trading halt, and a 550-point plunge halted trading for an hour. In 1998, though, new trigger levels were set at the joint proposal of the U.S. exchanges and the National Association of Securities Dealers.

A 10% decline before 2 p.m. would trigger a one-hour trading halt. After 2 p.m. but before 2:30 p.m., trading would be suspended for a half hour, and after 2:30 p.m., it would continue without interruption.

For a 20% drop before 1 p.m., trading would halt for two hours. If triggered between 1 and 1:59 p.m., trading would stop for one hour, and after 2 p.m., trading would close for the day.

A 30% plunge at any point throughout the session would stop trading for the day.

According to the SEC, the revisions were designed to disrupt trades only for one-day drops “of historic proportions.”