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

Stock Markets4 hours ago (Apr 06, 2020 12: 40AM ET)

© Reuters.

(Reuters) – Global exchanges are changing trading guidelines to defend their markets from intense volatility and speculative trading as the coronavirus pandemic threatens the enviornment financial system.

Many markets have shortened trading hours, and others are mulling whether or to not prepare swimsuit.

Here are just among the measures taken by exchanges internationally up to now:

ASIA

INDIA

The Reserve Bank of India lower trading hours for bonds and international substitute to four hours between April 7 to 17

India’s market regulator halved teach limits for obvious stock futures, restricted brief-selling of index derivatives and raised margin rates for some shares in a expose to curb “abnormally high” volatility.

The measures went into pause on March 23 and are situation to continue for one month

PHILIPPINES

On March 17, the Philippines became the principle country to suspend trade ideal 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 guidelines that will closing unless the pause of June

New guidelines will leer a 8% fall situation off a 30-minute discontinuance in trade; a 15% fall to provoke a 30-minute discontinuance, whereas a 20% fall will leer it halted for an hour

SOUTH KOREA

Earlier in March, South Korea tightened brief-selling guidelines for three months from March 11

Shares with a sudden and irregular lengthen briefly-selling transactions could be suspended from extra brief-selling for 10 days, compared with a essentially the most recent restrict of 1 day

Shares on the that fall 5% or extra and the assign each day brief-selling transactions are up by three or extra times the frequent of the outdated 40 days could be field to the recent rule

INDONESIA

The country’s central financial institution and financial regulator to lower trading hours for the currency and stock markets

The stock substitute tightened circuit breaker guidelines, the assign a extra than 5% fall on its predominant stock index () will leer trading halted by 30 minutes, compared with the 10% previously

If the index’s losses lengthen to 10% when trading resumes, this would maybe maybe be halted for a extra half of hour

The substitute has furthermore modified mechanisms for particular particular person stock prices, and trading will now be halted if there is a 10% switch, down from a outdated 20-35%

There is furthermore a ban on brief-selling: the artificial eradicated all stocks on a listing the assign it became as soon as allowed unless extra watch

EUROPE

AUSTRIA

The financial markets regulator banned brief-selling on the Vienna stock substitute unless April 18

GREECE

The country’s securities regulator banned brief-selling on the Athens stock substitute unless April 24 to defend the equities market from volatility

ITALY

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

SPAIN

Imposed a one-month ban on brief-selling, which it talked about might maybe maybe maybe be extended.

FRANCE

France banned brief-selling on 92 stocks on March 17

TURKEY

A ban on brief selling has been in teach in Turkey since leisurely February following an air strike that killed dozens of Turkish troops

AFRICA

SOUTH AFRICA

The Johannesburg Stock Alternate determined against shortening trading hours, but its head talked about JSE would strictly implement guidelines prohibiting uncovered, or bare brief-selling and lengthen the considerable halts to trading circuit breakers.

MIDDLE EAST

UNITED ARAB EMIRATES

Shares within the United Arab Emirates stock exchanges could be allowed to fall a each day most of 5% from their outdated day closing price, teach news agency WAM reported.

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