Factbox: Markets revise trading rules, hours, circuit breakers as volatility surges

Factbox: Markets revise trading rules, hours, circuit breakers as volatility surges

Reuters  | Apr 06, 2020 05:40

Factbox: Markets revise trading rules, hours, circuit breakers as volatility surges

(Reuters) - Global exchanges are changing trading rules to protect their markets from intense volatility and speculative trading as the coronavirus pandemic threatens the world economy.

Many markets have shortened trading hours, and others are mulling whether to follow suit.

Here are some of the measures taken by exchanges across the world so far:

ASIA

INDIA

** The Reserve Bank of India cut trading hours for bonds and foreign exchange to four hours between April 7 to 17

** India's market regulator halved position limits for certain stock futures, restricted short-selling of index derivatives and raised margin rates for some shares in a bid to curb "abnormally high" volatility.

** The measures went into effect on March 23 and are set to continue for one month

PHILIPPINES

** On March 17, the Philippines became the first country to suspend trade only to reopen later that week after the government exempted financial trading platforms from a strict coronavirus quarantine procedures.

THAILAND

** The country revised its circuit breaker rules that will last until the end of June

** New rules will see a 8% drop trigger a 30-minute halt in trade; a 15% fall to initiate a 30-minute halt, while a 20% plunge will see it halted for an hour

SOUTH KOREA

** Earlier in March, South Korea tightened short-selling rules for three months from March 11

** Stocks with a sudden and abnormal increase in short-selling transactions will be suspended from further short-selling for 10 days, compared with a the current limit of one day

** Stocks on the KOSPI that drop 5% or more and where daily short-selling transactions are up by three or more times the average of the previous 40 days will be subject to the new rule

INDONESIA

** The country's central bank and financial regulator to cut trading hours for the currency and stock markets

** The stock exchange tightened circuit breaker rules, where a more than 5% drop on its main stock index (JKSE) will see trading halted by 30 minutes, compared with the 10% previously

** If the index's losses extend to 10% when trading resumes, it will be halted for a further half hour

** The exchange has also changed mechanisms for individual stock prices, and trading will now be halted if there is a 10% move, down from a previous 20-35%

** There is also a ban on short-selling: the exchange removed all stocks on a list where it was allowed until further notice

EUROPE

AUSTRIA

** The financial markets regulator banned short-selling on the Vienna stock exchange until April 18

GREECE

** The country's securities regulator banned short-selling on the Athens stock exchange until April 24 to shield the equities market from volatility

ITALY

** From March 17, market regulator Consob suspended short-selling on the Milan stock market for three months.

SPAIN

** Imposed a one-month ban on short-selling, which it said could be extended.

FRANCE

** France banned short-selling on 92 stocks on March 17

TURKEY

** A ban on short selling has been in place in Turkey since late February following an air strike that killed dozens of Turkish troops

AFRICA

SOUTH AFRICA

** The Johannesburg Stock Exchange decided against shortening trading hours, but its head said JSE would strictly enforce rules prohibiting uncovered, or naked short-selling and lengthen the mandatory halts to trading circuit breakers.

MIDDLE EAST

UNITED ARAB EMIRATES

** Shares in the United Arab Emirates stock exchanges will be allowed to drop a daily maximum of 5% from their previous day closing price, state news agency WAM reported.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.