The New York Stock Exchange announced on Friday that it will eliminate the trading curbs that were put into place after the crash of 1987.
The NYSE will no long prohibit brokerages from executing certain program trades when the NYSE Composite Index rises or falls more than 2 percent.
Trading collars, in place since 1987, have been triggered 17 times in 2007.
``Volatility is neither restrained nor enhanced by the imposition of the collars,'' the NYSE said in the SEC filing making the changes effective. ``The exchange is making this change since it does not appear that the approach of market volatility envisioned by the use of these collars is as meaningful today as when the rule was formalized in the late 1980s.''