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Article 6
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The expression "an irregularity in the cumulative percentage of increase or decrease in the closing price for the particular security in the most recent period, combined with day trading of the given security at the given securities firm in which confirmed purchases or sales that account for an unusually high percentage of the intraday volume of trade in the given security" as used in Article 4, paragraph 1, subparagraph 5 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 confirmed purchases or sales in day trading of the given security at a securities firm accounts for more than 25 percent of the total volume of confirmed transactions in the given security (if the securities firm has branch offices, an additional 1 percent may be added for each branch office; the combined total may not exceed 35 percent), while also reaching a volume of 500 trading units or more.
Exceptions to the preceding paragraph are as follows:
- The percentages of increase or decrease in the closing prices of newly-listed ordinary shares during the period in which no price fluctuation limit is imposed shall not be included in the calculations for the standards under the preceding paragraph.
- The standards under the preceding paragraph shall not apply to convertible bonds, bonds with non-detachable share options, preferrence shares with non-detachable share options, and certificates of entitlement to new shares from convertible bond.
- When non trade-related factors (such as ex-rights or ex-dividend factors) have caused fluctuations in the price of a security or an index 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 or the closing index.
- The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in the 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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