FRANKFURT (dpa-AFX) – The slowdown in the German stock market triggered by the corona virus crisis is no reason for Deutsche Börse to shut down. “The consequence of a market closure would be non-transparency. The consequence would be even greater uncertainty,” a spokesperson for the market operator in Eschborn near Frankfurt told the news agency on Wednesday. financial dpa-AFX. The turbulence in the markets would then become even more drastic.
There is also no legal basis. It is only in the event of technical disturbances, information imbalances or indications of market manipulation that the management of the exchange can suspend trading as a whole or for individual securities.
According to a spokeswoman for Deutsche Börse, the Federal Financial Supervisory Authority (Bafin) cannot prescribe such a measure. Such a move could at best be decided by the federal government, which market experts consider extremely unlikely in this case.
The association of EU scholarships, FESE, also advocated for keeping scholarships open. Regulated exchanges had a social and economic function that had to exist even in times of uncertainty.
An important protective measure in the event of a sharp fall in prices on the German stock market is the so-called interruption of volatility. In the event of extreme fluctuations in the price of a security, trading is halted in this case. During this time, all buy and sell orders are collected in an auction, and then a new price is determined. Trading resumes.
Concerns have arisen about a possible stock market closure in Germany after the Manila stock exchange decided on Tuesday to take such a step following the spread of the novel corona virus. It indefinitely justified the blocking of the stock market with risks for the safety of traders. In the United States, the government wants to keep the stock markets open, but may shorten trading hours due to the violent turmoil in the markets. The world’s best-known index was the Dow Jones Industrial on Monday sank almost 13 percent. It was his worst defeat since “Black Monday” in 1987.
The Dax had already suffered the second biggest drop of the day in more than 30 years of history with a drop of just over 12% last Thursday. Since fear of the economic consequences of the novel corona virus was averted, the German stock market barometer has lost almost 40% in value. The record of just under 13,800 points just a month ago is now miles away.