The Moscow Stock Exchange, the Bank of Russia and market participants are discussing additional measures to counter abnormal price movements of third-tier shares. This was reported to RBC by a representative for the site, explaining the sharp increase in securities trading activity since January 2023.
Possible measures include discrete auctions for all stocks with a significant price deviation, as well as the introduction of narrower price corridors for stocks with a small free float.
The exchange representative did not name the timing of the implementation of the new mechanisms, “right now there is a discussion, so it is too early to talk about the timing,” he said.
Since 2019, the Moscow Stock Exchange has been using the mechanism of temporary narrowing of the price corridor in the event of a significant deviation in share prices in the absence of major corporate news and events. According to the site’s representative, the measures were effective.
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