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FACTBOX-Stock exchanges revise trading rules, circuit breakers as volatility surges

Published 03/23/2020, 07:44 AM
Updated 03/23/2020, 07:50 AM
JKSE
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(Adds more countries in Europe, Asia; includes South Africa,
UAE)
March 23 (Reuters) - Global stock exchanges are changing
trading rules to protect their markets from intense volatility
and speculative trading as the coronavirus pandemic hammers
equities and threatens the world economy.
There have also been calls to shorten trading hours or for
shut downs for a time to help calm stock markets rocked by
outbreak.
The New York Stock Exchange will temporarily close its
trading floors and move fully to electronic trading from March
23. Here are some of the measures taken by exchanges across the
world so far:

EUROPE
GREECE
** The country's securities regulator banned short-selling
on the Athens stock exchange until April 24 to shield the
equities market from volatility ** From March 17, market regulator Consob suspended
short-selling on the Milan stock market for three months.
** Imposed a one-month ban on short-selling, which it said
could be extended. ** France banned short-selling on 92 stocks on March 17
** A ban on short selling has been in place in Turkey since
late February following an air strike that killed dozens of
Turkish troops ASIA
INDIA
** The country's market halved position limits for certain
stock futures, restricted short-selling of index derivatives and
raised margin rates for some shares in a bid to curb "abnormally
high" volatility. ** The measures will come into effect from March 23 and
continue for one month

PHILIPPINES
** On March 17, the Philippines became the first country to
suspend trade only to reopen later that week after the
government exempted financial trading platforms from a strict
coronavirus quarantine procedures. ** The country revised its circuit breaker rules that will
last until the end of June ** New rules will see a 8% drop trigger a 30-minute halt in
trade; a 15% fall to initiate a 30-minute halt, while a 20%
plunge will see it halted for an hour

SOUTH KOREA
** Earlier in March, South Korea tightened short-selling
rules for three months from March 11 ** Stocks with a sudden and abnormal increase in
short-selling transactions will be suspended from further
short-selling for 10 days, compared with a the current limit of
one day
** Stocks on the KOSPI that drop 5% or more and where daily
short-selling transactions are up by three or more times the
average of the previous 40 days will be subject to the new rule

** The exchange also briefly activated sidecar curbs on
March 12 for the first time in more than eight years to halt
programme trading INDONESIA
** The stock exchange tightened circuit breaker rules, where
a more than 5% drop on its main stock index .JKSE will see
trading halted by 30 minutes, compared with the 10% previously
** If the index's losses extend to 10% when trading resumes,
it will be halted for a further half hour
** The exchange has also changed mechanisms for individual
stock prices, and trading will now be halted if there is a 10%
move, down from a previous 20-35%
** There is also a ban on short-selling: the exchange
removed all stocks on a list where it was allowed until further
notice SOUTH AFRICA
** The Johannesburg Stock Exchange decided against
shortening trading hours, but its head said JSE would strictly
enforce rules prohibiting uncovered, or naked short-selling and
lengthen the mandatory halts to trading circuit breakers.
EAST
UNITED ARAB EMIRATES
** Shares in the United Arab Emirates stock exchanges will
be allowed to drop a daily maximum of 5% from their previous day
closing price, state news agency WAM reported.

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