SET revises Circuit Breaker rules to deal with market volatility
The Stock Exchange of Thailand (SET)’s committee has approved the revised rules on temporary trading suspension or Circuit Breaker to deal with market volatility, Pakorn Peetathawatchai, SET President said on Tuesday (March 17).
The changes in triggering the Circuit Breaker are as follows:
- The first Circuit Breaker will stop trading for 30 minutes when the index fell over 8 per cent, instead of 10 per cent.
- The second Circuit Breaker will stop trading for another 30 minutes when the index fell by more than 15 per cent.
- The third Circuit Breaker will stop trading for 60 minutes when the index fell by over 20 per cent.
“When trading resumes after SET pushed the third Circuit Breaker, the market will not stop trading regardless of whether the drop continues until close,” he said.
“This measure will be effective for the short term from March 18 until June 30 this year.”
He added that the committee also approved to adjust the stock ceiling-floor to plus or minus 15 per cent from the previous 30 per cent to lessen volatility.
