Tuesday, September 6, 2011

Rule 48 called up by NYSE

The New York Stock Exchange and NYSE Amex Cash Markets invoked Rule 48 on Tuesday, after a selloff in Europe raised fears of rocky trading at the open of U.S. markets.

Rule 48 is invoked to speed up and smooth trading at the market open when exceptionally high volatility is expected.

NYSE invoked the rule on multiple occasions last month amid unstable market conditions, a time when the Dow Jones Industrial Average notched four consecutive 400-point swings for the first time in its 115-year history.

On Tuesday, U.S. stocks are poised to open sharply lower as steep drops in European markets and fears of a global recession are spurring investors to move out of assets perceived as risky.

Dow futures were recently down 226 points, while Standard & Poor's 500-stock index futures fell 27 points