Follow us :

Malaysian exchange says circuit breakers in place

time2008/10/16

Malaysia's stock exchange operator Bursa Malaysia said it had put in place safeguards such as circuit breakers to counter sharp market volatility.

Bursa said its circuit breaker would trigger automatically when the index drops 10 percent from the previous day's closing level, forcing a trading halt for a specified period of time.

"We will continue our close monitoring of the financial and risk exposures of the equities and derivatives brokers, especially under the current market environment," Bursa Chief Executive Yusli Mohamed Yusoff said on Monday.

"We will take the necessary proactive measures to ensure the continuation of a fair and orderly market place," he said in a statement.

Malaysian and fellow southeast Asian markets tumbled to new lows on Monday, with Singapore hit by falling bank shares and Indonesia plunging 10 percent on fears that efforts by policymakers to contain the credit crisis may not prevent a recession.