SGX is going to introduce so-call Circuit Breaker which is what Shanghai and some other markets practising now. It simply means stock price can't trade beyond 10%(up and down) of a stock's opening price within a day.
"SGX - Proposes circuit breakers for securities market in H2
The Singapore Exchange (SGX) has proposed to introduce circuit breakers in the securities market in the second half of this year.
The circuit breakers, which act in situations of runaway prices, will apply to component stocks in the Straits Times Index (STI) and the MSCI Singapore Free Index (SiMSCI), exchange traded funds (ETFs) based on these indices, and extended settlement contracts on these counters.
Taking into account overlapping of component stocks in the STI and the SiMSCI, there are now 37 stocks - which include the three local banks, property giant CapitaLand and some of its subsidiaries, as well the big commodities players of Olam International, Golden Agri Resources and Noble Group - that will be impacted.
Under the proposal, trading can occur within a price band of 10 per cent from the reference stock price. If there is an incoming order that would result in a trade outside of the price band, it will be rejected and a cooling-off period begins. The reference price will be the opening price for the trading day. If there is no opening price for the day, the reference price will be the last available opening or closing price."
Friday, July 8, 2011
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