January 2016
Global Circuit Breaker Guide
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
AT
Austria
No
No
AU
Australia
No
No
BE
Belgium
A “freeze” applies when an order is made at a
price beyond the static (+/-10%) and dynamic
(+/-2%) threshold prices (dynamic threshold
does not apply during the opening auction). All
other book orders are still valid. This volatility
interruption period can last 4 minutes.
1
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
BR
Brazil
No
RULE 1: If Ibovespa falls 10% in relation to the
closing index of the previous day, trading on all
the Exchange markets will be interrupted for
30 minutes.
RULE 2: As trading is resumed, if Ibovespa
falls 15% in relation to the previous day's
closing index, trading on all the Exchange
markets will be interrupted for one hour.
RULE 3: As trading is resumed, if Ibovespa
falls 20% in relation to the previous day’s
closing index, the Exchange may determine
the suspension of trading in all markets for a
defined period and such decision must be
disclosed to the market through News Agency
(ABO – Operations).
Note:
• RULES 1, 2 and 3 will not be applicable
during the last half hour of the trading
session;
• If any trading is interrupted during the
second to last half hour of a session, at the
time trading is resumed, the schedule will
be extended for at most a further 30
minutes, without any further interruption, in
order to ensure a final trading period of 30
consecutive minutes.
2
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
CA
Canada
No
Canada follows the U.S. on market wide
breakers: if the U.S. halts, so does Canada. In
the event the U.S. market is closed for a
holiday, there are currently no market wide
breakers in Canada. On a stock specific basis:
Canadian SSCB system applies to all stocks in
the S&P/TSX Composite Index, certain ETFs
that are comprised of exchange traded
securities and any other securities that meet
the IIROC threshold of being “actively traded.”
In total this accounts for roughly 470 securities.
The circuit breaker regime only operates from
market open until 3:30 p.m. In order to trigger
an SSCB halt, a stock must endure a price
increase or decrease of at least the greater of
10% or 20 trading increments in a 5 minute
period. This threshold is doubled during the
first 20 minutes of trading, and also during the
first 30 minutes after a halted stock resumes
trading. When triggered all markets are
informed electronically to halt trading for 5
minutes. This process currently takes about 2
seconds, during which further trading can
occur. During the 5 minute halt IIROC staff
review the trading leading up to the halt, and
have the option to extend the halt a further 5
minutes to create a more orderly market.
3
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
CH
Switzerland
No
A volatility auction is triggered if either a static
or dynamic price range is exceeded. The
volatility auction ends with price determination
– if price is > 2% extent of reference price (last
closing price), volatility auction can be
extended.
CL
Chile
No
Not automated. Decision to halt sits with Stock
Exchange board member. Liquid names have
discretional halt at +/- 10% Illiquid stocks are
halted after +/- 25% variation.
CN
China
Limit up/down to 10% move on the
individual stocks/5% for special
treatment (ST and S* shares).
Based on the CSI 300 move, applies to cash
equities, index futures and options: Move of +/5% trading suspended for 15 minutes. Move of
+/- 5% after 2:45 pm, trading halted for the
day. Move of +/- 7%, trading halted for the day.
CO
Colombia
No
Based on liquidity of security, automated circuit
breakers at +/- 6.5%, 7.5% or 10% variation.
4
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
DE
Germany
No
A Volatility Interruption Auction is instigated if
price ranges (static or dynamic) are exceeded
(3-10% static reference prices or 1-5% for
dynamic reference prices). Price ranges are
adjusted after auction price determination.
Volatility Interruption Auctions last approx. 5
minutes, with a random end. If a Volatility
Interruption Auction occurs during an auction
period, the auction period is extended by 2
minutes.
DK
Denmark
No
No
EE
Estonia
No
Circuit Breakers – 10% dynamic & 15% static.
ES
Spain
No
If execution reaches/breaches static or
dynamic price limits, the stock will be
suspended from automatic trading and an
auction will be initiated. Volatility auctions last
5 minutes. This auction may close at any
moment without prior warning. Unlike
opening/closing auctions, volatility auctions are
never extended.
FI
Finland
No
No
5
January 2016
Market
Country
Name
FR
France
GB
Great Britain
Limit Up/
Limit Down Rule
Circuit Breaker
A “freeze” applies when an order is made at a
price beyond the static (+/-10%) and dynamic
(+/-2%) threshold prices (dynamic threshold
does not apply during the opening auction). All
other book orders are still valid. This volatility
interruption period can last 4 minutes.
Automatic Execution Suspension
Period (5 minutes +30sec end)
occurs during continuous trading
when order >5% of last order book
trade.
Automatic Execution Suspension Period (5
minutes +30sec end) occurs during continuous
trading when order entered for price which
deviates from last order book trade by:
• 25%: for stocks priced below specific share
price.
• A maximum spread band-dependent, for
stocks priced below a specified share price
- Band 1: 10%, Band 2: 5%.
N.B. A trading halt occurs if Exchange believes
disorderly market has developed for a stock. If
an execution reaches/breaches either static or
dynamic price limit then security will suspend
from automatic trading without the trade
occurring.
GR
Greece
No
Stock Suspension occurs if price increases or
decreases by 10% since the closing price from
the day before.
6
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
HK
Hong Kong
No
No
ID
Indonesia
Limit down 10% / Limit up 20 - 35%
based on stock price.
No
IE
Ireland
No
No
IL
Israel
No
No
IN
India
Four tiers: 2%, 5%, 10%, and 20%.
A 3-stage system based on size of move
(either way) of the BSE Sensex or the Nifty 50
indices (whichever breaches earlier). The
moves are 10%, 15% and 20% (halt) the
market wide suspension duration (or a halt for
the rest of the day) and will depend on the time
of day. A 20% move any time of the day will
trigger a halt for the rest of the day.
IT
Italy
No
No
JP
Japan
Based on price bands. With rules
to double daily price limit under
certain circumstances.
No
KR
Korea
30% from “Base Price”
3 Phases of CBs on 8% / 15% / 20% drop on
KOSPI.
7
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
LT
Lithuania
No
Circuit Breakers – 10% dynamic & 15% static.
LV
Latvia
No
Circuit Breakers – 10% dynamic & 15% static.
MX
Mexico
No
Dynamic Fluctuation:
• 5% above/below the last max/min price of
the last 5 minutes results in security halt,
than auction for 2 minutes Static
Fluctuation.
• 15% from opening price or day before
results in security halt until BMV receives
news or pertinent information from the price
fluctuation.
MY
Malaysia
30% in general - exception limit up
400% for first day of trading.
3 Phases of Circuit Breaker – KLCI declines
10%, 15%, and 20%.
NL
Netherlands
No
No
NO
Norway
No
Trading can be halted in the event an “error”
resulting in price movement.
NZ
New Zealand
No
No
8
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
PE
Peru
No
Circuit breaker is activated when the General
Index (IGBVL) falls more than 7% on the day.
Exchange determines length of suspension.
Stocks have a halt at +/-15% variation. No
fluctuation limit for listed foreign securities.
PH
Philippines
Limit up 50% / Limit Down 40%.
Based on the PSEi a negative 10% move
triggers a 15 minutes suspension.
PT
Portugal
No
A “freeze” applies when an order is made at a
price beyond the static (+/-10%) and dynamic
(+/-2%) threshold prices (dynamic threshold
does not apply during the opening auction). All
other book orders are still valid. This volatility
interruption period can last 4 minutes.
RU
Russia
No
Price Deviation limits – on the main market the
maximum price deviation from previous closing
price is -/+30%, for other Listing Level the max.
price deviation from previous closing price is /+40%.
SE
Sweden
No
No
SG
Singapore
Listed companies may appeal SGX
to halt trading for a specified
duration.
SGX intervenes when deemed necessary.
9
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
TH
Thailand
Local board: +/-30. Foreign board
+/-60% relative to previous Close of
the local.
First stage: If the SET index falls by 10% from
the previous day's close, all trading in listed
securities will be halted for 30 minutes.
Second stage: If the SET index falls by 20%
from the previous day's close (i.e., another
10%), trading in all listed securities will be
halted for one hour.
TR
Turkey
No
Borsa İstanbul Regulation Article 25 paragraph
(b) envisages that trading of an equity may be
suspended in the event that orders of an
abnormal price or quantity are sent to Borsa
İstanbul Equity Market trading system, or that
the occurrence of some other elements inhibit
the formation of a healthy market. By the same
token, according to the provisions of Borsa
İstanbul Settlement and Custody Centers
Regulation, Borsa İstanbul is authorized to
change the settlement method of securities.
TW
Taiwan
10% from Open auction reference
price.
No
10
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
US
U.S.
During market hours an upper and
lower band is calculated for all stocks.
The low end of the band for Tier One
stocks, trading above $3.00, is the
mean of the last 5 minutes of trading
minus 5%, and the high end is the 5
minute mean plus 5%. For stocks in
Tier Two the band is 10% either side of
the mean. (Stocks under $3.00 have
larger percentage bands.) Rather than
have no protections around the open
and close, the U.S. markets double the
band from 9:30 a.m. to 9:45 a.m., and
again from 3:35 p.m. to 4:00 p.m. If the
offer on a security is equal to the lower
end of the permissible trading band, the
stock goes into a “limit state” for 15
seconds. During that time the market
may trade higher, but cannot trade
below the band. If after 15 seconds the
limit state persists, the security is
paused for 5 minutes, to allow the
market to assess any news, and
hopefully aid the efficient discovery of a
new equilibrium price. At the end of the
five minutes the security is re-opened
via an auction on the primary listings
exchange. The same process is used
when the bid on a security is equal to
the higher end of the permissible
trading band.
At the start of each quarter, the NYSE sets three
circuit breaker levels at levels of 7% (Level 1), 13%
(Level 2), and 20% (Level 3) of the average closing
price of the S&P 500 for the month preceding the
start of the quarter, rounded to the nearest 50-point
interval. Depending on the point drop that happens
and the time of day when it happens, different
actions occur automatically: Level 1 and Level 2
declines result in a 15-minute trading halt unless
they occur after 3:25pm, when no trading halts
apply. A Level 3 decline results in trading being
suspended for the remainder of the day.
11
January 2016
Market
Country
Name
Limit Up/
Limit Down Rule
Circuit Breaker
ZA
South Africa
No
Circuit Breakers 5% in continuous trading,
10% in opening and closing auctions in leader
stocks and SA/UK dual listed shares; and 10%
in continuous trading, 20% in opening and
closing auctions in medium liquid non-leader
stocks.
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