SGX proposes circuit breakers for securities market

THE Singapore Exchange (SGX) said yesterday that it plans to introduce circuit breakers to minimise volatility in the securities market.

The SGX said the proposed dynamic circuit breaker will comprise a price band of plus or minus 10 per cent of the price of an instrument.

The circuit breaker will trip and a five-minute cooling-off period will be activated, if a trade attempt is executed at a price outside the price band.

During the cooling-off period, market participants can continue to trade within the price band, which will remain constant throughout the cooling-off period, SGX said.

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