Tuesday October 10 2017

News Source: Global Exchanges

Focus: Trading Rules

Type: General




Brazilian Stock Exchange B3  (Brasil Bolsa Balcao) has introduced special trading procedures which will apply to the trading of assets which contain high price volatility (equivalent to four times the Ibovespa standard volatility of one month on an annualized basis).

The Exchange will adopt the procedure of thirty minute auction for the first transaction with the asset (opening price) and will initiate a 15-minute auction during the regular trading session if the price proposed during trading presents an oscillation that is equal or superior to 3% in relation to the last executed price.

These measures will be exercised on the basis that:

  • If the asset has any type of publicly traded stock with high price volatility, all of the company’s stocks of every type will be subject to special trading procedures,
  • These special trading procedures are not adopted for assets which are included in any theoretical portfolio of the Exchange indexes,
  • If market conditions so demand, the BM&FBOVESPA’s Operations Officer can establish an auction of differentiated duration for one or more assets.

The new Special Procedures have been enacted in accordance with article 8 of CVM Instruction 168, which establishes that special procedures are “those that seek to offer conditions appropriate for the balanced participation of investors in Stock Exchange trading.

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