PSX makes changes to existing Circuit-Breakers, introduces Index-Based Market Halts

December 15, 2019 (MLN): The Pakistan Stock Exchange (PSX) has amended Risk Management Regulations 0f PSX Rulebook, with the approval of Securities and Exchange Commission of Pakistan (SECP).

As per the approved amendments, the following changes are being implemented:

Enhancement of Scrip-based Circuit Breaker:

The existing Circuit Breaker of 5% or Rs. 1, whichever is higher, which shall be enhanced by 0.5% after every 15^th day till the time the circuit breakers reach the level of 7.5% or Rs. 1, whichever is higher.

Introduction of Index-Based Market Halts:

Index-Based Market Halts shall apply if KSE-30 index moves either way by 4% from its opening index value. Once the Scrip-based Circuit Breakers reach the level of 7.5%, the Index-Based Market Halt shall be applicable when KSE-30 index moves by 5% either way

Where KSE-30 Index moves 4% or 5%, as applicable, either way, for consecutive 5 minutes, market halt shall apply for 45 minutes. It may be noted that market halt shall not be applicable in case KSE-30 index moves beyond 4% or 5% as applicable in the last 1 hour of the market.

The above amendments shall take effect from Monday, January 20, 2020.

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