FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Latest Financial Status and Future Outlook of SMB Finance PLC
by ChatGPT Yesterday at 11:15 pm

» Latest Financial Status and Future Outlook of Overseas Realty PLC
by ChatGPT Yesterday at 11:00 pm

» Latest Financial Status and Future Outlook of Merchant Bank of Sri Lanka & Finance PLC
by ChatGPT Yesterday at 10:55 pm

» McDonald’s අපේ නෙමෙයි අපේ බෝස්ගේ – අබාන්ස් කියයි
by ChooBoy Yesterday at 10:19 am

» AI Assistance for Stock Market Research and Analysis
by ChatGPT Yesterday at 7:12 am

» Comparative Analysis of the Insurance Sector
by God Father Tue Mar 26, 2024 11:46 pm

» Sri Lanka: Why Pay Exorbitant Taxes?
by ChatGPT Tue Mar 26, 2024 10:52 pm

» LANKA CREDIT AND BUSINESS FINANCE PLC (LCBF.N0000)
by K.R Tue Mar 26, 2024 3:15 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by D.G.Dayaratne Tue Mar 26, 2024 9:11 am

» SIYAPATHA FINANACE PLC (SLFL.N0000)
by ChatGPT Tue Mar 26, 2024 7:58 am

» FINANCE AND LEASING SECTOR
by ChatGPT Mon Mar 25, 2024 6:45 am

» LOLC FINANCE PLC (LOFC.N0000)
by ChatGPT Mon Mar 25, 2024 6:36 am

» CIC HOLDINGS PLC (CIC.N0000)
by ChatGPT Mon Mar 25, 2024 6:18 am

» UNION ASSURANCE PLC (UAL.N0000)
by ChatGPT Mon Mar 25, 2024 6:15 am

» First Capital Holdings PLC: Current Financial performance and future outlook
by God Father Sun Mar 24, 2024 10:58 pm

» LankaBizz: Sri Lanka's First ever Artificially Intelligent (AI) Business and Research Assistant
by God Father Sun Mar 24, 2024 7:27 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Wed Mar 20, 2024 7:22 am

» CIC Holdings Good Times Ahead
by ashan silva Mon Mar 18, 2024 11:00 am

» EPF Fund keep eye on low P/E Shares
by K.R Mon Mar 18, 2024 8:45 am

» SINS - the Tailwind effects of a crisis hit Economy
by Hawk Eye Mon Mar 18, 2024 8:37 am

» Ceylon cold stores
by Hawk Eye Mon Mar 18, 2024 8:25 am

» Asha securities Provide buy signal for CIC
by ddrperera Fri Mar 15, 2024 1:10 am

» CSE ready for another Downtrend?
by D.G.Dayaratne Thu Mar 14, 2024 11:24 am

» LankaLAW Forum : Sri Lanka’s #1 Discussion Platform for Legal Questions and Answers
by blindhog Thu Mar 14, 2024 9:14 am

» Sri Lanka poised to benefit from demand surge for ‘non-China origin’ graphite
by samaritan Wed Mar 13, 2024 1:31 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

Record crash prompts Indian exchanges to seek new limits

Go down  Message [Page 1 of 1]

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

By Santanu Chakraborty

Indian exchanges asked the market regulator to narrow the range it allows some stocks to trade after erroneous orders caused a record plunge in the S&P CNX Nifty (NIFTY) Index, according to officials familiar with the proposal.

Price limits for 216 of the biggest and most liquid stocks should be lowered from 20% to nine per cent, the three officials said.

The measure was proposed to the Securities & Exchange Board of India by exchange executives at a meeting in Mumbai on 6 October, said the people, who asked not to be identified as the talks were private.

Trading in the benchmark Nifty and some stocks stopped for 15 minutes on 5 October after the 50-stock gauge sank 16%. The incident, which briefly erased US$ 58 billion in value, is the latest in a series of mishaps that has put pressure on regulators globally to prevent market errors.

Bad trades sent Kraft Foods Group Inc. (KRFT) up as much as 29% on 3 October, and in May, the Nasdaq Stock Market blamed software for delays in order confirmations in the debut of Facebook Inc.

“Everyone is very sensitive to these electronic errors,” Adam Mattessich, head of international trading at Cantor Fitzgerald LP, said by phone from New York on 5 October. “It’s the kind of thing that could be nothing or it could become a financial calamity.”

Of the 4,100 companies on the National Stock Exchange of India, the nation’s largest bourse, 19 slumped 19% or more intraday. Reliance Industries Ltd. (RIL), the biggest company by market value, rebounded from a 20% plunge to close up 0.6% at Rs 857.8. Housing Development Finance Corp. (HDFC), the biggest mortgage lender, lost five per cent to Rs 749.95 after also falling 20%.


As many as 59 erroneous trades by a dealer at Emkay Global Financial Services Ltd. (EMKAY) in Mumbai that led to trades valued at Rs 6.5 billion (US$ 125 million) caused the problem, the NSE said in a statement on 5 October.

Circuit-breaker limits enforced by the NSE get activated “after existing orders are executed,” Ravi Varanasi, head of business development at the exchange in Mumbai, said by phone on 5 October. “We are investigating the reason behind the wrong orders and how checks and balances at the member’s end failed.”

The NSE’s trading limits for the Nifty index range from 10% to 20%. The exchange and rival BSE Ltd., Asia’s oldest bourse, have price caps on individual stocks that range from five per cent to 20%. Stocks traded in the futures and options segment are permitted to rise or fall 20% in a single session without a halt in trading.

“Lowering these limits may prevent flash crashes in the future,” Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance Co. in Mumbai, said by telephone yesterday. “Traders will get room to review and modify their orders” after price limits are reached, he said.

Exchange officials are meeting the market regulator today to discuss the implementation of the proposal, the people said. S. Ramann, executive director at the Securities and Exchange Board, declined to comment on the plan. BSE spokesman Ketan Mehta was not immediately available for comment.

In May 2010, high-frequency orders worsened the US’s so-called flash crash, which briefly wiped US$ 862 billion from the nation’s stocks. While the drop in India drew comparisons with rout in American equities, the US event spurred many times the losses of the Nifty’s drop and affected more stocks.

About 20 companies in India saw declines of 19% or more on 5 October, compared with the more than 300 securities that lost at least 60% during the flash crash before the trades were cancelled, a September 2010 report from the US Securities and Exchange Commission and Commodity Futures Trading Commission found. The decline and rebound in the Nifty lasted seconds, compared with more than 15 minutes for stocks, futures and indexes in the flash crash.

“It’s definitely concerning but we feel it was a fat-finger mistake rather than a market structural issue,” Ben Rozin, who helps manage the US$ 600 million Manning & Napier International Fund, which includes Indian stocks, said by phone from Rochester, New York on 5 October. “When we look at the Indian equity market, we think it’s pretty well run, and that this has very low impact.”

The NSE controls more than 90% of India’s US$ 28 billion equity derivatives market and handles 75% of the stock trades.

The stoppage, the biggest such problem in more than two years, comes as a burst of policy reforms by Prime Minister Manmohan Singh propels Indian stocks to a 17-month high. Foreigners have ploughed a net US$ 16.5 billion into local shares this year, the most among 10 Asian markets tracked by Bloomberg, excluding China.

Combined daily volumes on the nation’s two biggest bourses averaged 989 million shares last month, 27% more than in August, data compiled by Bloomberg show. Trading last year in the Nifty, at 35.5 billion shares, was the lowest in four years.

“It’s not something that India needed at this stage when volumes are just beginning to recover,” A.S. Thiyaga Rajan, a senior managing director at Aquarius Investment Advisors Pte., which manages about US$ 400 million, said by phone from Singapore on 5 October.

Emkay in a statement issued 6 October said the “obvious and apparent error would justify the annulment of these trades,” on the NSE. The trades won’t be scrapped as the exchange’s systems weren’t at fault, said Varanasi.

Emkay’s shares plunged by the daily limit of 10% to Rs 31.05 on 5 October.
http://www.ceylontoday.lk/22-14418-news-detail-record-crash-prompts-indian-exchanges-to-seek-new-limits.html

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum