- POSTED: 08 Oct 2013 22:28
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The Securities Investors Association of Singapore (SIAS) has called on the Singapore Exchange (SGX) to implement the circuit breaker mechanism immediately to help prevent wild fluctuations of stock prices.
SINGAPORE: The Securities Investors Association of Singapore (SIAS) has called on the Singapore Exchange (SGX) to implement the circuit breaker mechanism immediately.
This is to help prevent wild fluctuations of stock prices.
A circuit breaker in the market would also enable investors to digest the information available during the break and make informed decisions.
Whenever there is a huge fluctuation in the share price, whether upwards or downwards, SGX will have to intervene to maintain an orderly market and, therefore, in the interest of investors.
Currently, it does so by suspending trading of the shares and asking the company to explain the sudden fluctuations.
There is no circuit breaker mechanism for securities trading, unlike Malaysia.
Share price fluctuations are largely due to market perceptions and poor company disclosures providing little information.
SIAS, in its statement, called on listed companies to disclose all relevant information in good time.
Investors are also encouraged to be discerning about sudden price fluctuations.
Better information disclosures would enable analysts to write better reports to help investors and companies, said SIAS.