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 ?
The rule actually protects U.S banks affected by the trading curbs, since they won't be allowed to engage in certain self-destructive activities.
"Our appeal should also send a message that the largest speculators in the world can't litigate regulators to death," said Bart Chilton, one of three Democrats on the CFTC and a supporter of the trading curbs. "Your deep pockets can't protect you from what the law clearly states."
New trading curbs will apply to exports of 14 metals, including iron ore, manganese, gold, silver and copper.