From December 25, the Moscow Exchange will introduce a mechanism to limit the aggressiveness of limit orders
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Moscow Exchange (MOEX: MOEX) announced the introduction of additional measures to counteract the destabilization of share prices from December 25. The mechanism for limiting the aggressiveness of limit orders assumes that when executing an order for shares and units, the maximum price deviation will be set at 5% of the price of the best counter order at the time the limit order is submitted.
IN message Moscow Exchange notes that such measures are aimed at protecting investors from errors when submitting applications for transactions with stock market instruments, as well as from possible losses due to significant price changes.
For the first time, a mechanism for limiting the aggressiveness of orders on the stock market was introduced by the Moscow Exchange on November 2, 2020 for market orders. In July—September 2023 Moscow Exchange recorded 63 cases of destabilization of prices for traded instruments (shares and depositary receipts). In all of 2022, only 13 such episodes were recorded.
What measures to combat surges in trading in low-liquidity securities have been approved by the Moscow Exchange – in the Kommersant material “The third echelon will be held for takeoff”.
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