Under the LULD system, trades aren’t allowed to take place over a specified percentage above or below the average price in the preceding five-minute period, with 10% on low-volatile trading days and under 10% on high-volatility days. Trades are paused for five minutes if prices don’t shift away from the specified limits within 15 seconds.
The old circuit-breaker system pauses trades for five minutes when an ETF’s price moves 10% in five minutes.
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Max Chen contributed to this article.