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SGX adds safeguards against error trading of consolidated shares
THE Singapore Exchange (SGX) will flag shares undergoing consolidation and introduce reference prices for brokers to prevent error trades, the market operator announced on Tuesday.
Shares that will undergo consolidation will be marked with the "CE" label, for cum-entitlement, in SGX's stock price pages, while shares that have just been consolidated will be marked "XE", for ex-entitlement.
The SGX will also introduce a reference price for newly consolidated stocks. The reference price, which will be used by brokers to gauge whether a trade entry may be at the wrong price, will be a theoretical price calculated from a stock's last traded price adjusted for any consolidation, splits, or cash distributions on the same date.