The Moscow Stock Exchange and the Central Bank will take a new approach to combat the rise in share prices of third-tier companies. Starting September 21, restrictive measures will be introduced: it will not be possible to place purchase orders for shares at a price higher than 22% of the closing price of the previous day.
The Bank of Russia, together with the Moscow Stock Exchange, is introducing new measures to combat the volatility of shares of third-tier companies. A statement about this was published on the website of the Moscow Stock Exchange and the Bank of Russia.
As of September 21, it will be prohibited to place purchase orders for shares higher than 22% with respect to the closing price of the previous day.
“In case of stock price destabilization, the exchange will apply asymmetric price broker limit setting,” the trading platform said in a statement.
“By the decision of the Bank of Russia, when guilt is determined, foreign exchange operations may be limited both for business participants and their clients,” the Central Bank noted.
The Moscow Exchange is also finalizing a mechanism that will transfer trading to discrete auction mode if there are signs of price destabilization.
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