Circuit breaker limit down question

Discussion in 'Trading' started by whiskers, Aug 1, 2021.

  1. whiskers

    whiskers

    hi guys,

    I'm trying to understand the opening mechanism for the equity market in regards to the "new" market wide circuit breaker rules that went through in october 2020 after the march covid bear (nyse rule 7.12).

    When U.S. cash equity markets are closed, equity index futures now have 7% price limits up and down from the previous day’s settlement price, from the 5% limits we had in march. It is now the same as the 7% price limit for equity market from 09:30 to 3:25 (with a freezing period of 15 minutes).

    The equity market before this change had a chance to open at 9:30 matching the down 5% from the futures and halt 5-10 minutes later if it dropped to 7%. So what happens now at the cash equity open at 9:30:00 if the index futures are limit down 7%? Does it print for a second then halts until 9:45? Will it only open at 9:45 with the 7% breaker gone? I'm having a hard time finding this info. Thanks for your input,