Our study shows that the circuit breaker mechanism and the daily price limit system are similar in nature as they are both short-term price stabilization measures.
The daily price limit system sets a limit on the price movement of individual securities and is designed to avoid sharp price fluctuation of individual securities.
Earlier, the contract rose by the 3.000 cents per lb daily price limit while the session gains of 5.3 percent were the largest in the lifetime on the contract.