Index based market wide circuit breaker for Jan-Mar 2013

Exchanges implement on a quarterly basis the index based market wide circuit breaker system. The system is applicable at three stages of the index movement either way at 10 percent, 15 percent and 20 percent. This circuit breaker brings about a coordinated trading halt in all equity and equity derivative markets nationwide.
 
The market wide circuit breakers would be triggered by movement of either SENSEX or the NSE S&P CNX Nifty whichever is breached earlier.
 
>> In case of a 10 percent movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for ½ hour. In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10 percent level and the market will continue trading.

>> In case of a 15 percent movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15 percent trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt. If the 15% trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day.

>> In case of a 20 percent movement of the index, the trading will be halted for the remainder of the day.

The percentages are calculated on the closing index value of the quarter. These percentages are translated into absolute points of index variations (rounded off to the nearest 25 points in case of SENSEX and 10 points in case of NIFTY). At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter.
 
On December 31, 2012, the last trading day of the quarter, SENSEX closed at 19426.71 points and NIFTY at 5905.10. The absolute points of SENSEX and NIFTY variation (over the previous day's closing SENSEX and NIFTY) which would trigger market wide circuit breaker for any day in the quarter between 1st January, 2013 and 31st March, 2013 would be as under:

Percentage (+/-)	Equivalent Points (+/-)
	Sensex--------Nifty
10%	1950	590
15%	2925	890
20%	3875	1180

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