Flash Report /
Bangladesh

Bangladesh regulators allow block trades up to 10% below the floor price

  • Regulators will allow block trades below the floor price set on 31st July 2022.

  • Please note that this new lower price limit for a stock is subject to its circuit breaker.

  • When a stock reaches its floor, the circuit breaker will be calculated based on the floor price.

IDLC Securities
15 November 2022
Published byIDLC Securities
  • Regulators will allow block trades below the floor price set on 31st July 2022, according to a circular by Bangladesh Securities Exchange Commission. The new lower price limit for blocks is a maximum of 10% below the floor price.

  • Please note that this new lower price limit for a stock is subject to its circuit breaker. The circuit breakers of stocks range from 3.75% to 10.00%. The applicable rate depends on the market price of a stock. Below is a summary of applicable circuit breakers based on the price criteria.  

  • When a stock reaches its floor, the circuit breaker will be calculated based on the floor price since the market price is equal to the floor. Since the circuit breaker is tagged with the floor prices, the new limit for block trades eventually creates a new floor price, which is lower than the existing floor price in the normal market.