The Australian Securities and Investments Commission (ASIC) will make institutional investors or large equity market participants cut their number of executed trades by 25 per cent on levels seen last Friday.
The pre-emptive actions under ASIC Market Integrity Rules are aimed at keeping the market resilient following an environment of heavy trading over the past two weeks.
"This action will require high volume participants and their clients to actively manage their volumes," ASIC said.
"We do not expect these limits to impact the ability of retail consumers to execute trades."
ASIC claims while there was no disruption to market operations on Friday, there was a significant backlog of work required to be undertaken over the weekend by the exchanges and trading participants.
"If the number of trades executed continues to increase, it will put strain on the processing and risk management capabilities of market infrastructure and market participants," the regulator said.
Updated at 11:12am AEDT on 16 March 2020.
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