30 May 2023 15:03

Moscow Exchange to extend discrete auction regime to all equities

MOSCOW. May 30 (Interfax) - The Moscow Exchange from June 5 will be able to conduct discrete auctions for all traded shares and depositary receipts, the trading platform said in a statement.

Currently the discrete actions technology applies only to securities from the calculation base of the MOEX index.

Since 2013, the discrete auction has replaced the suspension of trading on the stock market in case of significant price changes.

During the discrete auction period traders can submit bids for purchase or sale of securities, the price of which will be taken into account when resuming trading in the normal mode.

The discrete auction is used when the current share price deviates from the closing price of the previous trading day by more than 20% within 10 minutes. The session consists of three auctions of 10 minutes each. After 30 minutes elapse since the beginning of the auction, trading resumes in regular mode.

No more than two discrete auctions for one security can be held during the trading day. They are not held after 4:40 pm Moscow time.

In April the stock market committee of the Moscow Exchange agreed on measures to combat the high volatility of prices for low-liquidity securities, including the extension of the discrete auction mode to all shares, the exchange's press service told Interfax. In addition, an extraordinary increase in the price increment was planned for a number of low-liquidity securities and narrowing of price corridors for securities that are 1005% provisioned and for which abnormal price deviations were logged. The MOEX also planned to refine the methodology for countering destabilization in terms of triggering criteria and accelerating the response.