Information Memos

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Number 13-6 05 Apr 2013
 
ATTENTION:    
 
TO:   ALL MEMBERS AND MEMBER ORGANIZATIONS
 
SUBJECT:   AMENDED RULE 80B EFFECTIVE ON APRIL 8, 2013

New York Stock Exchange, LLC and NYSE MKT LLC members and member organizations (together, the "Exchange") are advised that, beginning on April 8, 2013, amended Rule 80B containing a revised methodology for determining market-wide circuit breakers will go into effect on a one-year pilot basis to coincide with the initial date of operations of the Regulation NMS Plan to Address Extraordinary Market Volatility ("LULD Plan").

The current rule provides for specified trading halts following certain "Level 1", "Level 2" and "Level 3" market declines calculated at the beginning of each calendar quarter using 10%, 20% and 30%, respectively, of the average closing value of the Dow Jones Industrial Average ("DJIA") for the month prior to the quarter.

Amended Rule 80B replaces:

the DJIA with the S&P 500;

the quarterly calendar recalculation of Rule 80B triggers with daily recalculations; and

the 10%, 20%, and 30% market decline percentages with 7%, 13%, and 20% market decline percentages.

Amended Rule 80B also modifies:

the length of the trading halts associated with each market decline level; and

the times when a trading halt may be triggered.

A copy of amended Rule 80B is attached.

Questions concerning this Information Memo should be directed to:

Clare Saperstein, Vice President, NYSE Regulation, Inc., 212.656.2355, or

David De Gregorio, Chief Counsel, NYSE Regulation, Inc., 212.656.4166.

Operational questions regarding this Information Memo or the LULD Plan should be directed to:

Bob Airo, Senior Vice President, Operations, 212.656.5663, or

Michael Paulyson, Senior Vice President, Operations, 212.656.2721.

Attachment (Rule 80B)

Rule 80B. Trading Halts Due to Extraordinary Market Volatility

Operative as of April 8, 2013.

This Rule shall be in effect during a pilot period to coincide with the pilot period for the Regulation NMS Plan to Address Extraordinary Market Volatility. If the pilot is not either extended or approved permanently at the end of the pilot period, the prior version of Rule 80B shall be in effect.

(a) The Exchange shall halt trading in all stocks and shall not reopen for the time periods specified in this Rule if there is a Level 1, 2, or 3 Market Decline.

(i) For purposes of this Rule, a Market Decline means a decline in price of the S&P 500® Index between 9:30 a.m. and 4:00 p.m. on a trading day as compared to the closing price of the S&P 500® Index for the immediately preceding trading day. The Level 1, Level 2, and Level 3 Market Declines that will be applicable for the trading day will be publicly disseminated before 9:30 a.m.

(ii) A "Level 1 Market Decline" means a Market Decline of 7%.

(iii) A "Level 2 Market Decline" means a Market Decline of 13%.

(iv) A "Level 3 Market Decline" means a Market Decline of 20%.

(b) Halts in Trading.

(i) If a Level 1 Market Decline or a Level 2 Market Decline occurs after 9:30 a.m. and up to and including 3:25 p.m. or in the case of an early scheduled close, 12:25 p.m., the Exchange shall halt trading in all stocks for 15 minutes after a Level 1 or Level 2 Market Decline. The Exchange shall halt trading based on a Level 1 or Level 2 Market Decline only once per trading day. The Exchange will not halt trading if a Level 1 Market Decline or a Level 2 Market Decline occurs after 3:25 p.m., or in the case of an early scheduled close, 12:25 p.m.

(ii) If a Level 3 Market Decline occurs at any time during the trading day, the Exchange shall halt trading in all stocks until the primary listing market opens the next trading day.

(c) Re-opening of Trading

(i) The re-opening of trading following a Level 1 or 2 trading halt shall follow the procedures set forth in Rule 123D.

(ii) If the primary listing market halts trading in all stocks, the Exchange will halt trading in all stocks until trading has resumed on the primary listing market or notice has been received from the primary listing market that trading may resume. If the primary listing market does not reopen a security within 15 minutes following the end of the 15-minute halt period, the Exchange may resume trading in that security. Page 4 of 4

(c) Nothing in this Rule 80B should be construed to limit the ability of the Exchange to otherwise halt, suspend, or pause the trading in any stock or stocks traded on the Exchange pursuant to any other Exchange rule or policy.

Amended: May 31, 2012 (SR-NYSE-2011-48), operative April 8, 2013.


NYSE Regulation, Inc




1. See Securities Exchange Act Release No. 67090 (May 31, 2012), 77 FR 33531
2. (June 6, 2012) (SR-NYSE-2011-48); see also Securities Exchange Act Release No.34-68784 (January 31, 2013), 78 FR 8662 (February 6, 2013) (SR-NYSE-2013-10) (extending effective date from February 4, 2013 to April 8, 2013). A Trader Update containing an overview of the LULD Plan can be found at HYPERLINK "http://www.nyse.com/pdfs/2013_01_07_LULD_Overview.pdf?vm=r&s=1"http://www.nyse.com/pdfs/2013_01_07_LULD_Overview.pdf?vm=r&s=1. If the pilot is not either extended or approved permanently at the end of the pilot period, the current version of Rule 80B would be in effect.
3. The Rule 80B triggers and whether a market decline threshold has been breached will be published as CTS messages. See HYPERLINK "http://www.nyxdata.com/News/Details?id=746"http://www.nyxdata.com/News/Details?id=746.


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