6533b7d0fe1ef96bd125a152

RESEARCH PRODUCT

Circuit Breakers – a legal analysis of volatility safeguards in the rules of stock exchanges on the occasion of the COVID-19 crisis

Daniel Neurath

subject

Coronavirus disease 2019 (COVID-19)Stock exchangeFinancial instrumentLegal analysisCommercial lawFinancial systemBusinessInterruptVolatility (finance)Circuit breaker

description

Abstract This paper examines circuit breakers (CBs), i. e. emergency systems of trading venues that interrupt or restrain trading when significant price movements of financial instruments occur. After a description of the ratio legis and the economic fundamentals, the genesis and the different forms of CBs are presented. The European legal framework is then outlined. The relevant rules of the Frankfurt Stock Exchange (FWB) serve as an example.

https://doi.org/10.15375/zbb-2020-0408