Black Monday Anniversary Highlights Modern U.S. Trading Safeguards
Photo: TokenPost
The 39th anniversary of Black Monday falls Monday, Oct. 19, after a weaker Friday session for U.S. stock benchmarks. The Dow Jones Industrial Average fell 508 points, or 22.6%, in one session on Oct. 19, 1987, a market break that led to new trading safeguards. By October 1988, circuit-breaker procedures were operating in U.S. securities and futures markets, shaped by the 1987 crash and Brady Report proposals. The current market-wide rules use declines in the S&P 500 from its previous close to set three thresholds. In 1987, portfolio insurers’ use of options and derivatives added to selling pressure.
Source: TokenPost
