Device interrupts negotiations in the stock market at atypical times, when there is a strong drop in actions
The main future index of the Japanese scholarship, the Nikkei 225, suffered one on Monday (7.abr.2025), to the point of announcing a circuit breakera mechanism that serves to temporarily suspend negotiations on the stock exchange. Under the tariff plan of US President Donald Trump (Republican), Japan faces a 24% rate on its exports to the US.
This feature is used in exceptional situations, especially when there is a sharp drop in prices, with reference to the variation of Ibovespa, the main indicator of the stock market in Brazil. When the circuit breaker It is activated, the operations of buying and selling assets are paralyzed, according to B3, as the Brazilian stock exchange is known.
In Brazil, a circuit breaker It is performed at 3 stages. The 1st stage begins when Ibovespa registers a 10% drop compared to the closing of the previous trading session, the negotiations in the bag are suspended for 30 minutes. If, after the resumption of the activities, the index has a 15% devaluation over the same previous closure, the 2nd stage enters into force, which determines a new interruption of negotiations, this time for one hour.
The 3rd Internship happens if, upon returning again, Ibovespa reaches a 20% drop in the face of the previous day’s closure, B3 may choose to suspend negotiations for an additional time, the duration of which will be established according to the scholarship evaluation. In this scenario, market participants will be informed through the official channels of B3.
These mechanisms, however, cannot be triggered in the final 30 minutes of the trading session. In addition, if the stoppage occurs during the last hour of the trading session, the closing of the market may be postponed within 30 minutes, thus allowing the reopening and continuity of stock negotiations and derivatives without new interruptions.
Japan’s Nikkei 225 fell by 7%, extending a 9% drop in last week, its most pronounced percentage decline in one week since March 2020. Future negotiation was temporarily interrupted after the declines triggered a circuit breaker.
