Singapore Exchange to Adopt Circuit Breakers by Early Next Year
Under the proposal, trading of a stock will be halted for 5 minutes if it breaches 10 percent in either direction, the exchange said in an e-mailed response to queries. The bourse sought public feedback on the plan in June, it said.
“We aim to introduce the dynamic circuit breakers by early next year subject to regulatory approvals,” Joan Lew, a spokeswoman for the exchange, said in the statement yesterday.
The bourse operator imposed trading restrictions this week on Blumont Group Ltd. (BLUM), Asiasons Capital Ltd. and LionGold Corp. (LIGO) after their stock prices plunged. Trading caps to prevent sharp gains or losses will give investors time to assess their holdings, according to Liquidnet Holdings Inc. and the Securities Investors Association of Singapore.