The first is to set an effective declared price range. At present, Hong Kong market, Japan market, Chicago Mercantile Exchange, European Futures Exchange and other exchanges have all adopted the price declaration scope mechanism, the main purpose of which is to prevent abnormal trading behaviors such as placing wrong orders, maliciously driving up prices and suppressing stock prices. When determining the specific parameters of the price declaration scope, the Shanghai Stock Exchange has repeatedly calculated and demonstrated, and fully considered the impact on market liquidity, and only restricted high-priced bills and low-priced bills that deviate from the market price to smooth price fluctuations.
The second is to adopt an intraday temporary suspension mechanism. In the design process of trading mechanism, on the one hand, the cooling measures of intraday trading suspension can provide a certain cooling-off period for market participants when the stock price fluctuates greatly, and alleviate the overheated speculative atmosphere to some extent; On the other hand, appropriately raising the suspension threshold and shortening the single suspension time can minimize the impact on the continuity of market transactions, give market participants more trading time to give full play, and help to form a reasonable price as soon as possible.
The third is to declare the market price guarantee price limit. In order to effectively protect the legitimate rights and interests of investors, the Shanghai Stock Exchange has optimized the way to declare the market price of science and technology innovation boards. When the market price fluctuates rapidly, investors need to set an acceptable maximum buying price or minimum selling price (that is, the upper limit of protection price) to prevent the market price declaration from trading at a price beyond investors' expectations and reduce investors' trading risks.