Trading Curb

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Trading Curb

On an exchange, a measure designed to prevent panic selling by stopping trading after a security or an index has fallen by a certain amount. For example, if the Dow Jones Industrial Average falls 10% in a trading day, the New York Stock Exchange institutes a trading curb that suspends trade for at least one hour. A trading curb is intended to allow investors to determine whether a situation is really as bad as it looks. It is sometimes called a collar or a circuit breaker. See also: Suspended trading.
References in periodicals archive ?
Shanghai shares plunged earlier this month after the regulator imposed margin trading curbs on major brokerages.
Global Banking News-November 28, 2014--PwC study says EU bank trading curbs harmful
This week, India's central bank eased some trading curbs imposed as the rupee depreciated in the past two years.
But bankers, their lobbyists, and the politicians who do their bidding are eager to heap outsize blame on new national and international bank rules, including trading curbs, consumer protections and higher capital requirements.
The stock market regulator imposed trading curbs between August and December 2008 to attempt to halt the slide but the measures had little effect.
In January, the US Commodity Futures Trading Commission proposed to limit speculation, with trading curbs on physically and financially settled crude, natural gas, heating oil and gasoline futures and options contracts.
A decline today in the New York Stock Exchange composite index proved steep enough, however, to trigger trading curbs, which put restrictions on certain types of sell orders.
The deficiencies undermine the study's conclusions as well as its use as a basis for dual trading curbs.
American banks such as Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) may elect to drop their bank holding company status in order to get around the proposed trading curbs.
If trading curbs were sharply tightened, he said, it would take many more speculators to make up the other side of transactions with big hedgers like Chesapeake.
Stock market watchdogs have already slapped trading curbs on Yugang's shares, for domestic investors, after the company posted losses for two consecutive years.