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Article 4
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The expression "an irregularity in the cumulative percentage of increase or decrease in the closing price of a security for the most recent period, combined with an irregular increase in the volume of trade for the given day relative to the daily average for the most recent period" as used in Article 4, paragraph 1, subparagraph 3 of the Directions shall mean that the particular security meets both of the following conditions on a given day:
- The cumulative percentage of increase or decrease in the closing price of a security for the most recent 6 business days (inclusive of the given day) is greater than 25 percent, and differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 20 percent or more.
- The volume of trade in the security on the given day shows an increase of five times or more over the daily average for the most recent 60 business days (inclusive of the given day), and the increase differs with the average value for the market as a whole, as calculated in accordance with this subparagraph, by a factor of four or more.
Exceptions to the preceding paragraph are as follows:
- The percentages of increase or decrease in the closing prices and the daily transaction volumes of newly-listed ordinary shares during the period in which no price fluctuation limit is imposed shall not be included in calculation of the standards under the preceding paragraph.
- The standards under the preceding paragraph shall not apply to convertible bonds, bonds with non-detachable share options, preference shares with non-detachable share options, certificates of entitlement to new shares from convertible bond, call (put) warrants, share options, exchange-traded fund (ETF) beneficiary certificates, and exchange-traded notes (ETNs).
- When non trade-related factors (such as ex-rights or ex-dividend factors) have caused fluctuations in the price of a security during the period for which standards under the preceding paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price.
- The standards under the preceding paragraph shall not apply when intraday turnover is less than 0.1 percent, or when trading volume remains below 500 trading units.
- The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in a given sector.
- The provisions of the preceding paragraph regarding same-sector securities shall not apply when a security has a negative price-to-earnings ratio or is trading at 60 times earnings or above.
- The standards in the preceding paragraph shall not apply if the percentage of premium or discount of the securities announced through the MOPS for the preceding business day meets one of the following conditions:
- It does not exceed 10 percent.
- The direction of movement is opposite that of the standard increase or decrease under the preceding paragraph.
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