Will the stock fluctuation range be eliminated in the new year?
The permissible range of price fluctuations is one of the most important rules used in financial markets as a controlling factor against stock price fluctuations. The allowable range of fluctuations is the ceiling and floor price limits that each share can have per working day. The price can only move in this range. In fact, this range is the allowable range for stock price fluctuations.
Of course, the range of fans and critics of the fluctuation range is very wide, because what is the extent of the fluctuation range and whether there should be a fluctuation range in the capital market or not is always a matter for experts. Many capital market experts also believe that in order to improve the stock trading process, it is necessary to increase the volatility and eventually eliminate it completely. Because positive and negative emotional trends, despite the amplitude of fluctuations, cause more deviation in stock trading.
Of course, the range of fluctuations over the past two years and in line with the ups and downs of the market, has seen many changes. So that from February 16, 2016, it changed from positive and negative five to positive six and negative two. The decision was made by the Supreme Council of the Stock Exchange with the aim of balancing this market. Of course, the life of this decision was about three months, and the range of fluctuations increased from the beginning of May 1400 to positive six and negative three, and finally from May 15 of the same year, the range of price fluctuations of all companies listed on the stock exchange and OTC, symmetrical and in range Positive and negative 5% were traded.
What decision does the stock exchange organization make for the volatility range?
According to the latest promise of the authorities, this area is to be changed. Shortly after becoming the helmsman of the Securities and Exchange Commission, Majid Eshghi announced that the issue of opening the swing range should be on the agenda. But this must be done gradually and on a specific schedule, which is definitely in our plans.
He then stated that if the conditions are right, there are various ways to open the oscillation range. Among them is the opening of volatility for the stocks of companies that have balance and market.
Of course, Eshghi believes that the range of fluctuation is the same as grammatical pricing. Noshan domain does not allow the market to find its way in supply and demand without grammatical interventions. In this regard, it was in early February that he announced that in the next one or two months we will see fundamental changes in the field of fluctuation.
Based on this, and while according to Eshghi, the task of oscillation amplitude was expected to be determined by the end of 1400, but after that Eshghi announced that a process has been completed to change the oscillation amplitude and the amplitude will gradually open up. The decision in this case will be announced in the new year (1401).
Why does the oscillation range not change?
Finally, in his last press conference last year, he announced the gradual correction of the fluctuation range from the beginning of 1401 and said: “The change of the fluctuation range is in the program of the stock exchange organization, but this issue needs to clarify some ambiguities, including budget and political risks.” . I have already announced that domain reform will start with large companies, and now the plan is that from one date onwards, the reform will begin gradually and at a rate of one percent. This trend will be reviewed on a quarterly basis based on market feedback.
“The effort is to reform the scope of the bulk of the market, but the market has its own story,” he said.
Some speculate that the amplitude of the fluctuation will increase to 10%, which may gradually increase due to market conditions.
Source: ایسنا