SGX to adopt circuit breakers by early next year

After $6.9b in market value got erased in just 3 days.

According to Bloomberg's report, Singapore Exchange (SGX), Southeast Asia’s biggest bourse, plans to add circuit breakers by early next year after a plunge in shares of three commodity companies erased $6.9 billion in market value over three days.

Under the proposal, trading of a stock will be halted for 5 minutes if it breaches 10 percent in either direction, the exchange said in an e-mailed response to queries. The bourse sought public feedback on the plan in June, it said.

“We aim to introduce the dynamic circuit breakers by early next year subject to regulatory approvals,” Joan Lew, a spokeswoman for the exchange, said in the statement today.

Read full report here.