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 ?
To counter the sanctions and trading curbs, ally Turkey and neighbouring Iran have been pouring in food supplies by air and sea.
Farm unions had long called for the introduction of Quarantine Units (QU) to ease trading curbs and the new system was several years in the planning.
Shanghai shares plunged earlier this month after the regulator imposed margin trading curbs on major brokerages.
M2 EQUITYBITES-November 28, 2014-Planned EU bank trading curbs could be harmful, PwC study says
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.
The new rule, which is a finished version of the trading curbs, was first proposed by President Obama back in 2010 and will be voted on by five agencies on or around Dec.
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.
New trading curbs will apply to exports of 14 metals, including iron ore, manganese, gold, silver and copper.
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.
Though he considers there to be little need for dark trading curbs to support price formation on the displayed markets -- given the fact that investors will always want to trade at the bid and offer price, compared to the mid-point execution offered by most dark pools -- Higgins stresses the need for clearer and more granular trading data ahead of any policy decision being reached on dark pool restrictions.
The market regulator imposed trading curbs between August and December 2008 in an attempt to halt the slide, but the measures had little effect.