The reason the Warsaw Stock Exchange (WSE) suspended trading on all markets for an hour on Monday was that the volume of brokerage orders threatened to destabilize the system, the exchange said after trading closed.
The WSE suspended operations between 15:15 and 16:15 local time citing “security of trading.” The bourse said in a statement that the volume of activity on Monday was more than 300% above average and 40% above Friday’s level.
The stock exchange described the suspension as an “operational action in line with the established procedures” in order to “avoid the risk of reaching the stability limits of the trading system.”
“To ensure that investors are able to make transactions at the close of trading and to protect the safety of trading, the chairman of the session... decided to temporarily suspend acceptance of brokers’ orders,” the statement said.
“Market volatility is currently high, although there have been sessions in the past with even higher volatility,” the statement continued. “This time, however, the number of placed and modified orders was unusually high, intensified by the activity of algorithmic trading strategies.”
Having lost almost 7% in early trading on Monday, the WSE rallied to close its two main indexes a little under 1.5% down. World markets have been rattled by the U.S. government’s decision to impose wide-ranging trade tariffs.
The stock exchange described the suspension as an “operational action in line with the established procedures” in order to “avoid the risk of reaching the stability limits of the trading system.”
“To ensure that investors are able to make transactions at the close of trading and to protect the safety of trading, the chairman of the session... decided to temporarily suspend acceptance of brokers’ orders,” the statement said.
“Market volatility is currently high, although there have been sessions in the past with even higher volatility,” the statement continued. “This time, however, the number of placed and modified orders was unusually high, intensified by the activity of algorithmic trading strategies.”
Having lost almost 7% in early trading on Monday, the WSE rallied to close its two main indexes a little under 1.5% down. World markets have been rattled by the U.S. government’s decision to impose wide-ranging trade tariffs.
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