Moscow Exchange recorded 63 cases of destabilization of stock prices in the third quarter
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In July-September 2023, the Moscow Exchange (MOEX: MOEX) recorded 63 cases of destabilization of prices for traded instruments (shares and depositary receipts). In all of 2022, only 13 such episodes were recorded. A representative of the trading platform explained RBC an increase in the number of cases by tightening the criteria for determining the facts of price destabilization.
According to RBC’s interlocutor, the shares of mid- and small-cap companies, which are included in the unquoted part of the listing, are mainly subject to destabilization. “We carefully examine each case and, if non-standard transactions are identified, we transfer the information to the regulator,” added the representative of the Moscow Exchange.
An increase in the number of cases of destabilization of pricing on the securities market in the second and third quarters of 2023 was confirmed by RBC and the Bank of Russia. The regulator’s representative noted that in some cases, significant price changes were due to market trends. For example, the concentration of liquidity at certain hours, in particular after the opening of trading, and its decrease in subsequent hours, as well as the absence of market makers for individual securities. At the same time, cases of non-market pricing of individual shares, primarily of the third tier, were recorded, he added.
On massive cases of price destabilization on the Moscow Exchange securities market reported in August. Due to sharp stock fluctuations, the trading platform held 122 discrete auctions in two weeks of the month, compared to 57 for the entire July and 38 in June. As part of measures to counteract destabilization and high volatility of Moscow Exchange share prices from October 30 will update mechanism for conducting discrete auctions. In particular, restrictions on the number of auctions will be lifted and the timing of their holding will be expanded.
What measures to combat surges in trading in low-liquidity securities has been approved by the Moscow Exchange – in the Kommersant material “The third echelon will be held for takeoff”.
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