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What is the fuse mechanism?
The fuse mechanism, also known as the automatic stop mechanism, refers to the measures taken by the exchange to stop trading when the stock index fluctuation reaches the specified fuse point.

Specifically, it is a mechanism to set a fuse price for the contract before the contract reaches the price limit, so that the contract trading quotation can only be traded within this price range for a period of time.

20 15, 15, Shanghai Stock Exchange, Shenzhen Stock Exchange and CICC officially issued the relevant regulations on index fuse. The benchmark fuse index is the Shanghai and Shenzhen 300 Index, which has two thresholds of 5% and 7%. 1October 20 16 1 day officially implemented,1October 20 16 1 day suspended.

In order to maintain the smooth operation of the market, with the approval of China Securities Regulatory Commission, Shanghai Stock Exchange decided to suspend the implementation of the "index fuse" mechanism stipulated in Section 5 of Chapter 4 of the Trading Rules of Shanghai Stock Exchange from 20 16 1.8.