Stock exchange resorts to circuit breaker after 10% decline

Negotiations at B3, the Brazilian stock exchange, were interrupted at 10:30 am today (Mar. 9), when the circuit breaker was used, after Ibovespa dropped 10.02% at 88,178.33 points. Trading was resumed at 11:08.

Stocks are being affected by the reduction in international oil prices amid a dispute between Saudi Arabia and Russia.

The circuit breaker is used following a sharp fall in the price of securities traded in the stock exchange. The implementation is carried out in three stages. First, when Ibovespa is devalued ten percent from the final value the day before, trading is interrupted for 30 minutes. Second, when the variation facing Ibovespa reaches a negative 15 percent from the final value closing out the day prior, negotiations are once again halted for an hour. Finally, B3 may suspend trading for an indefinite period if Ibovespa drops 20 percent from the rate the day before.