İstanbul Stock Exchange Changes Price Limits Against Extreme Volatility
* Photo: Anadolu Agency (AA)
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Borsa İstanbul (İstanbul Stock Exchange - BIST) has introduced a series of measures to limit the extreme volatility in the markets and sharp changes in prices amid rising global concerns over coronavirus.
According to the announcement released on the official BİST website yesterday evening (March 12), the changes in price limits and equity and derivatives markets has entered into effect as of today and will be valid until a second announcement is made by the General Directorate.
Borsa İstanbul has introduced the following measures against the extreme volatility, which prevails in Borsa İstanbul together with global markets:
Price margin for determining price limits of the shares traded in the BIST Stars and BIST Market have been reduced from their respective levels of 20 and 15 percent to 10 percent in all groups.
Price change triggering circuit breaker in BIST Stars and BIS Main Market has been reduced from 10 and 7.5 percent to 5 percent in all groups.
As for the circuit breaker call period, which was 5 minutes in BIST Stars and 15 and 25 minutes in BIST Main groups, it has been all increased to 30 minutes. Circuit breaker uncross period time will remain as 2 minutes in BIST Stars and BIST Main Markets.
While price margin for determining price limits in exchange traded funds, real estate certificates, real estate investment funds and venture capital investment funds has been reduced to 10 percent from 20 percent, price margin in rights coupons will remain as 50 percent.
In addition to the above changes to the equities market, the daily price limits of single stock and equity index futures contracts have also been decreased to 10 percent in the derivatives market.
Rising concerns about the new coronavirus (Covid-19) are also affecting stock markets around the world negatively. While global markets posted falls as high as 10 percent yesterday, the BIST 100 Index also fell by 7.26 percent to 93.639,50 points. (HA/SD)
