HKEX to Roll Out Anti-Volatility Mechanism Next Month

[kreslik.news]

Starting from Monday, 14 November 2016, the Hong Kong Exchanges and Clearing Limited (HKEX) will put into place its Volatility Control Mechanism (VCM) – a measure designed to cool the market for five minutes when there are abrupt price changes on some derivatives.

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The fine-tuned features of HKEX’s “circuit breaker” will prevent price volatility arising from major trading errors and other unusual incidents such as a flash crash and algorithm errors.

The move will bring Hong Kong more closely in line with other major and regional markets that have implemented some ... (read more)