GSE amends price movement rules
The Ghana Stock Exchange has amended its rules on price movement.
This follows approval by the Securities and Exchange Commission.
The amended rules are stated in Rule 30 of the newly-approved Trading Rules and replace Rule 22 of the GSE Automated Trading System (GATS) Rules.
The objective of the amendment is to enhance stock price discovery and fair market pricing.
Rule 30 (price movement) of the newly-approved trading rules states that for a security whose price is GHS0.10 or above, the price change on a trading day shall not exceed plus or minus 10 per cent (10%) of the previous day’s closing price for the security.
Also, for a security whose price is GHS10.00 and above, the price may only change with a minimum volume of 500 shares.
Rule 30, however, shall not apply to negotiated trades.
The GSE has, however, directed all Licensed Dealing Members to, with effect from June 15, 2020, apply the following to all trades.
Only orders equal or above the designated threshold for each group as stipulated in Rule 30, can change in price within the price band of +/- 10% of the previous day’s price or VWAP and order volumes below the designated threshold in each group are to be priced at the current market price of that security.