Moscow Exchange reduces the level of aggressiveness of market orders in international shares

Effective 1 April 2021, Moscow Exchange will change the price deviation limit applied to filling market orders in shares of international issuers from 3% to 1%. As a result, the execution price of a market order for these instruments may differ from the best bid/offer price available at the time the order is entered by no more than 1%.

The mechanism to limit the aggressiveness of orders on MOEX’s Equity Market was introduced on 2 November 2020. The limit aims to help investors enter orders in equities and bonds without errors, as well as protect them from losses arising from substantial price movements.

During the period the mechanism has been in place, it has restricted 4,417 market orders, including orders by 2,439 individuals. In parallel, 2,154 such orders were submitted in less liquid shares and exchange-traded funds, and so the restriction allowed a substantial number of investors to avoid the risks of executing orders at less favourable prices.

Moscow Exchange is monitoring the mechanism on an ongoing basis and considers the opinions of market participants in elaborating its approaches.