Launch of Volatility Control Mechanism ("VCM") by HKEX

With effect from 22nd Aug 2016, Hong Kong Exchanges and Clearing Limited ("HKEX") will launch the Volatility Control Mechanism ("VCM") to provide a cooling-off period when there are abrupt price changes on individual security (limited to all Hang Seng Index ("HSI") and Hang Seng China Enterprise Index ("HSCEI") constituent stocks when VCM is first launched, together the "VCM securities"). During the Continuous Trading Session ("CTS") (except the first 15 minutes of the morning and afternoon CTS, and the last 15 minutes of the afternoon CTS), the VCM will be triggered if the price of a VCM security is deviated more than ±10% away from the last traded price 5 minutes ago. A 5-minute cooling-off period will start. During the cooling-off period, trading is allowed within a pre-defined price band, but a buy/sell order will be rejected if the potential execution price is outside the above-mentioned price band. For details of the VCM, please visit webpage of HKEX.

Search Results