Market-Wide Circuit Breakers

What this video covers

• How a Market Decline is measured using the S&P 500 between 9:30 a.m. and 4:00 p.m. against the immediately preceding trading day's closing value
• Why the primary listing market determines and publicly disseminates the Level 1, Level 2, and Level 3 thresholds before 9:30 a.m. Eastern
• Why members must halt both quoting and trading in all national market system (NMS) stocks when the market-wide halt is publicly disseminated, without waiting for a separate Financial Industry Regulatory Authority (FINRA) message
• The 7% Level 1, 13% Level 2, and 20% Level 3 triggers, including the halt and once-per-level-per-day rules
• The 3:25 p.m. Level 1 and Level 2 cutoff, the 12:25 p.m. early-close cutoff, and why a Level 3 decline closes the market at any time during the trading day
• How OTC equity securities halt automatically with NMS stocks, and when FINRA may permit off-exchange trading to resume after the primary listing market fails to reopen a security
• What designated Trade Reporting Facility (TRF) and Alternative Display Facility (ADF) members must verify during annual circuit breaker testing, including Securities Information Processor (SIP) messages and the ability or attempt to process them