Reported by Star-Bulletin staff & wire
Tuesday, February 16, 1999
NEW YORK -- The New York Stock Exchange said new restrictions on computer-aided program trading began today, opening the door for more daily market volatility. New NYSE trading curbs begin
Dow Jones News ServiceUnder the previous 50-point "collar," traders who darted between stocks and stock-index futures, in a type of program trading called index arbitrage, were constrained from selling stocks into falling markets and buying them in rising markets when the Dow Jones industrial average rose or fell 50 points from the previous day's close. The collar was lifted when the industrials returned to within 25 points of their previous close or at the end of the day.
Under new rules, the restriction will kick in only after the Dow industrials move 180 points or about 2 percent, at current levels. The collar will be removed if the Dow moves back to within 90 points of its previous close. The revised collars will be calculated quarterly as 2 percent of the average closing value of the industrial average for the last month in the previous quarter, the NYSE said. The collars for the new quarter will be in effect through March 31.
The collar was introduced in 1988 and modified in 1990 in response to concerns that index arbitrage exacerbated the 1987 stock-market crash. At the time, 50 points represented about 2 percent of the level of the Dow industrials. But with the market up almost fourfold since then, 50 points represents just 0.6 percent of its level.
All Nippon taps AMR for Hawaii work
All Nippon Airways Inc. has hired AMR Services to provide cabin cleaning services for its aircraft at Honolulu Airport.AMR plans to hire up to 20 workers plus a manager and supervisor for the new service.
ANA has two Boeing 747 jumbo jet arrivals in Honolulu each day, one from Nagoya and the other from Tokyo.
The companies said the contract, starting April 1, is the first Hawaii operation for AMR Services, a subsidiary of American Airlines's parent, AMR Corp.
A New York merchant bank, Castle Harlan Inc., is acquiring AMR Services.
First Hawaiian shuts four branches
As part of a cost-saving program it announced in October, First Hawaiian Bank last week closed four branches, which together had 25 employees.The bank said more than half of the workers have been placed in other jobs within First Hawaiian.
Closed were the Makiki Heights and Laie branches on Oahu, the Kaikoo branch in Hilo and the Kaahumanu branch on Maui.
Gerry Keir, a spokesman for the bank, said there are no plans for more closings.
The bank said last fall it would close some branches and cut 70 positions, offering severance packages to those who could not find other positions in the bank within 90 days.
Longs' coupons available on 'Net
Longs Drugs' customers with Internet connections can order coupons from the company's Web site, http://www.longs.com.Those who go to the site can sign up and securely printed, copy-resistant coupons will be mailed to them later.
The new arrangement was made possible by a partnership between Longs Drug Stores Corp. and a business called planet U. The San Francisco-based company offers "U-pons" to a range of retailers.
Longs has a total of 379 stores, including 31 stores in Hawaii.
See expanded coverage in today's Honolulu Star-Bulletin.
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