THE Singapore Exchange (SGX) said on Wednesday it is considering introducing circuit breakers to minimise volatility in the stock market.

The proposed dynamic circuit breaker will comprise a price band of plus or minus 10 per cent of the price of an instrument, SGX said, adding it will seek public consultation on the matter.

"Should a trade attempt to be executed at a price outside the price band, the circuit breaker will trip and a five-minute cooling-off period will be activated," SGX said. "During the cooling-off period, market participants can continue to trade within the price band, which will remain constant throughout the cooling-off period."

Circuit breakers such as what SGX is proposing are already in use in countries such as Australia, Britain and the United States.