(Repeats to more subscribers)
SINGAPORE Jan 22 Singapore Exchange Ltd
will bring in circuit breakers for its securities
market on Feb. 24, as it responds to criticism following a penny
stock crash in October.
The exchange first proposed circuit breakers in June, but
pressure to bring in such a mechanism intensified after three
stocks crashed last October, losing S$5 billion ($3.91
billion)of market value in just 40 minutes of trading.
SGX said the circuit breaker will kick in when a trade is
about to go through at a price more than 10 percent higher or
lower than the securities' last traded price from at least five
When a circuit breaker is triggered, there will be a five
minute cooling-off period where trading can only take place
within a 10 percent price band above or below the reference
The breakers will apply to all stocks in the Straits Times
and MSCI Singapore indices. It will also apply to all securities
priced 50 cents and above, regardless of the currency, for
example stapled securities, exchange traded funds, exchange
traded notes and extended settlement contracts.
SGX is expected to report its weakest profit in more than a
year when it announces results later on
($1 = 1.2785 Singapore dollars)
(Reporting by Rachel Armstrong and Anshuman Daga; Editing by