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Sector
Financials
Size
Large Cap
Market Cap £5.98bn
Enterprise Value £5.76bn
Revenue £591.5m
Position in Universe 278th / 6094

Singapore Exchange proposes price limits on stocks in auction sessions

Mon 15th July, 2019 10:20am
SINGAPORE, July 15 (Reuters) - Singapore Exchange's
 SGXL.SI  regulatory unit is proposing imposing price limits
during daily stock auctions to prevent incidents such as the $41
billion flash crash in January that briefly roiled shares in
conglomerate Jardine Matheson  JARD.SI .
    Currently, SGX has daily circuit limits during trading hours
but not for auctions, during which brokers place buy and sell
orders. Officials from SGX Regulation (SGX RegCo) said the
regulatory unit is proposing a 30 percent price cap for the
opening auction and a 10 percent price cap for the midday and
closing auctions.
    The proposals are aimed at safeguarding against price
dislocations, Tan Boon Gin, chief executive of SGX RegCo, told a
news conference.
    Shares in Jardine Matheson crashed 83 percent in early trade
on Jan. 24, wiping nearly $41 billion off its market value,
before rebounding as its shares changed hands far below the
market level.
    Some brokers involved in the trade had requested SGX to
amend or cancel the trades but SGX had said trading was orderly
and it found no basis to cancel the transactions after a review.

 (Reporting by Anshuman Daga; Editing by Jacqueline Wong)
 ((anshuman.daga@tr.com; +65 64035676; Reuters Messaging:
anshuman.daga.thomsonreuters.com@reuters.net))
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