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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