Zeev's Turnips Patch-No Politics (ZEEV)

[Train Guy]

We still have a ways to go.

Program Trading "Collars"
A collar on program trading firms instituted by the NYSE is most commonly referred to on CNBC as "curbs in". The NYSE applies program trading curbs whenever the Dow Jones Industrial Average moves 200 points higher, or 200 points lower than the previous day's closing price.

This NYSE restriction on program trades stays in place until the Dow Jones returns to within 100 points of the previous day's closing price; or, until the end of the trading day at 3:00 CT. The restrictions will be re-imposed each time the Dow Jones advances or declines 170 points. NYSE Trading Curbs apply only to our firm's (and other program trading firm's) computer assisted program trades. Contrary to what the public thinks, these collars do not completely stop all program trading, nor do they cancel out today's premium (prem) execution levels.

The NYSE defines a Program Trade as:
1. A basket of 15 or more stocks from the Standard & Poor’s 500 Index.
2. A basket of stocks from the Standard & Poor's 500 Index valued at $1 million or more.

Once the NYSE program trading collar is in place, Program Selling can be executed only on an up-tick. That means that the last trade was executed at a higher price than the trade before it. Program Buying can be executed only on a down-tick. That means that the last trade was executed at a lower price than the trade before it.