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Securities Commission Malaysia And Bursa Malaysia Implement Temporary Revisions To Market Management And Control Mechanisms

The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia) will implement temporary revisions to existing market management and control mechanisms, namely the dynamic and static price limits, and the circuit breaker, to provide added stability and confidence in the marketplace. The revisions will be applicable for a six-month period from 20 July 2020 to 18 January 2021.

The decision for these precautionary measures took into account global market conditions that remain volatile amidst persistent uncertainties due to Covid-19, continued economic weaknesses and the re-escalation of geopolitical tensions.

The SC and Bursa Malaysia will continue to closely monitor global developments and take a prudent approach in implementing the necessary measures to support a fair and orderly market.

  1. i.                   Revised Static and Dynamic Price Limits for FBMKLCI Component Stocks
    1.                    Revised Circuit Breaker Trigger Levels
  2. Securities Type

    Securities Prices

    Static Price Limit

    Dynamic Price Limit

     

     

    FBMKLCI Component Stocks

     

    >=RM1.00

    Upper limit price +30% Lower limit price -15%

    Upper dynamic limit +8% Lower dynamic limit -5%

     

    <RM1.00

    Upper limit price +30 sen Lower limit price -15 sen

    Upper dynamic limit +8 sen Lower dynamic limit -5 sen

  3. Revised Circuit Breaker Trigger Levels

Trigger Level

FBMKLCI Decline

From 9:00am -

before 11:15am

From 11:15am to 12:30pm

From 2:30pm

before 3:30pm

From 3:30pm to 5:00pm

1

FBMKLCI falls by an aggregate of 10% or more but less than 15% of the previous market day’s closing index

 

 

1 Hour

 

Rest of Trading Session

 

 

1 Hour

 

Rest of Trading Session

2

FBMKLCI falls by an aggregate of or more than 15% of the previous market day’s closing index

 

 

Rest of Trading Day

Note: Temporary reduction of the circuit breaker levels from three levels (10%, 15% and 20%) to two levels (10% and 15% only)

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