CHINA: Singapore Exchange to introduce circuit breakers on 24 February, 2014

Wednesday January 22 2014

Singapore Exchange (SGX) will introduce circuit breakers in the securities market from 24 February as an additional market safeguard.

Circuit breakers will initially apply to Straits Times Index and MSCI Singapore Index component stocks and all those securities priced $0.50 and above. This will also include stapled securities, funds, exchange traded funds, exchange traded notes and extended settlement contracts. These securities account for about 80% of trading on the Singapore stock market.

In addition, SGX will revise its error trade policy effective 24 February. For all securities except bonds, trades will not be cancelled if the transacted price falls within a price range of 20 minimum bid sizes, or 5%, from the last traded price. For structured warrants, the price range will be 20 minimum bid sizes, or 25%, from the last valid price. Trades done outside of the relevant price range are eligible for review by SGX. For bonds, any error trade will be eligible for review.

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