PSX sets the duration of Index-Based Market Halt at 60 minutes

October 7, 2020 (MLN): The Pakistan Stock Exchange (PSX) has specified the following time duration in the clause pertaining to Index-based Market Halts:

• The duration of Index-Based Market Halt shall be 60 minutes; and
• The Index-Based Market Halt shall be applicable in the last 75 minutes prior to the close of the market.

For the uninitiated, the clause regarding Index-Based Halts states that in case, KSE-30 Index continues to trade 5%, above or below its last day closing index value for consecutive 5 minutes, the trading in all securities shall be halted for such duration as specified by the exchange. Upon imposition of a market halt, the following measures shall be taken:

• All equity and equity-based derivative markets shall be suspended.
• The market shall have a five (05) minutes pre-open before its re-opening.
• NCCPL shall collect margins including Mark-to-Market losses from its Clearing Members as per its Regulations. Only those BCMs shall be allowed to trade after the resumption of trading for that day which have deposited the required margins with NCCPL.

Provided that the market halt shall not be applicable in case the KSE-30 index moves beyond 5% during such duration prior to the close of the market as specified by the Exchange.

Copyright Mettis Link News