Aug 03, 2015 (LBO) – The Athens stock exchange will reopen Monday with restrictions, more than a month after the Greece financial crisis pressured the closure of the exchange.
The Athens Exchange Stock Markets Steering Committee and the Boards of Directors of AthexClear last Friday decided to reopen the Regulated market and the Multilateral Trading Facility of the Athens Stock Exchange.
The full text of the announcement issued by Athens Stock Exchange restricting trading is reproduced below.
ATHENS EXCHANGE ANNOUNCEMENT
A. ADJUSTMENTS ON THE VOLATILITY INTERRUPTERS (VIs) PARAMETERS
According to the article 2.6 of the ATHEX Rulebook and the article 4 of the ATHEX BoD Resolution No 22, ATHENS EXCHANGE (ATHEX) decided for the first three (3) days of its reopening, to adjust the parameters of the Volatility Interrupters (VIs) of its Main Cash Market, as follows:
We remind you that VIs is the mechanism by which the trading on a security is automatically halted when the price of a trade that would execute is out of certain limits and a Pre-call phase (collection of orders phase) starts, followed by an Auction. The potential trade that triggered the VI, is not executed.
By this way, the market during the Auction event has the opportunity to determine the efficient price of a stock. But even in the case that the violent movement of a stock’s price is justified from the market, the VI mechanism will help to gradually adjust this price movement at the next efficient price levels.
B. DELETION OF THE LIFE ORDERS
Moreover, we inform you that due to the prolonged period of the trading activity suspension, ATHEX decided to delete (cancel) all outstanding life orders of all the ATHEX Markets and the Alternative Market (ENA) MTF .