NYSE Arca Expands Amounts Stock Prices Can Move When Reopening
Annie Massa antoniabmassa
December 7, 2015 — 5:37 PM EST
Price levels were widened for opening auctions in September
Exchange will announce date for system change in later update
NYSE Arca, the New York Stock Exchange’s sister market, widened the amount prices are able to move when a security reopens after a trading halt.
Under the exchange’s new rule, securities valued at 1 cent to $25 a share can rise or fall 10 percent from their prior level. Securities between $25.01 and $50 can move 5 percent, and those valued at more than $50 can move 3 percent. Previously, those thresholds were 5 percent, 2 percent and 1 percent, respectively.
The change mirrors a threshold increase NYSE Arca put in place for opening auctions in September. One of NYSE Arca’s primary businesses is serving as the home market for hundreds of exchange-traded funds. Many of those had unusual price swings when the market opened on Aug. 24, prompting trading halts that contributed to the stock market having one of its most volatile sessions in years.
The exchange will disclose when its new system will go into effect in another update, it said. NYSE Arca and the New York Stock Exchange are both owned by Intercontinental Exchange Inc.
The greatest deception men suffer is from their own opinions.
~ Leonardo da Vinci
