The following is provided for informational purposes, and not meant to be legal advice.
NYSE Rule 80A, also known as the Sidecar Rule, deals with limitations on trading during significant market declines. When the Chicago Mercantile Exchange (CME) S & P 500 futures contract declines 12 points below the previous trading day's close (the trigger value), the CME notifies the New York Stock Exchange (NYSE). The NYSE displays the notification on the trading floor, and routes program trading orders in any stock, that is a component of the S & P 500 futures, entered through NYSE's systems (i.e. SuperDot) to a separate undisclosed file (the sidecar) for five minutes.
Stocks are to continue to trade as normal during the five minute period (the sidecar period), and normal expectations of dealer performance stay in effect.
After the five minute period, the undisclosed file is opened, and the orders are reported to the specialist in the stock for execution.
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