Bulgarian Stock Exchange Says Expands Price Ranges Triggering Halts in Trading by 30%

“In view of the high volatility in the financial markets worldwide, BSE-Sofia informs all its members that the price ranges causing volatility interruptions shall be extended by 30%,” the bousre said in a statement.

The price ranges were expanded by 30% on Monday and Tuesday as well. The bourse can expand the range by up to 30% for a single trading session to prevent suspension of trading.

According to the BSE rules the shares traded on the bourse’s official market have a dynamic price range of 5.0% of the reference price, and the static price range is set at 10% of the last price achieved at an auction.

Sofia bourse's blue-chip SOFIX index sank 8.93% to 596.49 points and the broader BG 40 index plunged 5.89% to 155.52 by 0855 GMT on Wednesday.

On Tuesday, the SOFIX index, which includes the 20 most liquid stocks on the BSE, dropped 4.92% to 654.42, and the broader BG 40 index, which tracks the 40 most liquid companies on the bourse, lost 3.63% to 165.26.

The markets in Asia and Europe opened strongly in the red on Wednesday on concerns the credit crisis will deepen and will lead to global recession.