SGX to Introduce Circuit Breakers in February

The circuit breakers will be triggered when a potential trade is matched at a price that is more than 10 percent away from its reference price and will apply to Straits Times Index and MSCI Singapore Index component stocks and all securities priced at $0.50 and above. It also includes stapled securities, funds, exchange traded funds, exchange traded notes and extended settlement contracts.

The exchange has also announced it will be implementing a new error-trade policy that stipulates that trades of all securities, except bonds, will not be cancelled if the transacted price is down by 5 percent from the last traded price. For structured warrants, the price should not change by more or less than 25 percent from the last valid price.

"The introduction of circuit breakers and the new error trade policy will assure investors of continued safety and transparency even under volatile market conditions," says Muthukrishnan Ramaswami, president of SGX. "The implementation of these two initiatives will complement our existing safeguards in support of a fair, orderly and transparent market."

Trades done outside of the relevant price range will be eligible for review by the SGX.