The original plan of trading hour extension to afternoon for which is expected to take effect on February 20, 2012 (Monday) is delayed for one or few more weeks. According to sources, the extension of trading hours in the afternoon session will likely to begin on March 5, 2012 (Monday).
According to the chairman of State Securities Commission, they are still waiting for final approval.
Chairman Bang said although all the technical issues related to the extension had been addressed but the concern of the liquidity in the market is still low and the increase of trading volumes may not meet the expectation at this moment.
Once approved, the morning sessions will open at 9:00AM (GMT+7) instead of 8:30 AM (currently) to 11:30AM (GMT+7) and close for lunch break from 11:30AM (GMT +7) to 1:00PM (GMT+7).
The afternoon sessions will open at 1:00PM (GMT+7) and close at 2:30 PM (GMT+7) including continuous order-matching (1:00PM to 2:00PM), closing order-matching (2:00PM to 2:15PM) and negotiated transactions (1:00PM to 2:30PM).
The total trading time of two hours and a half in the morning for opening order-matching, continuous order-matching and put-through transactions will remains unchanged.
The reason to extend the trading hours so as to be in line with the regional standard practices as are in China, India, Indonesia, Taiwan, Philippines, New Zealand, etc. With this in view, it is expected to make continuous order-matching in afternoon sessions longer in attempt to strengthen market liquidity.
Also, the plan suggests no newly-placed orders, amendment and cancellation of matched orders as well as put-through advertising and settlement during the midday trading break.
Additional regulations will also be imposed namely all-day trading price band, determination of reference price, order cancellation and amendment.
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