What is ASM?

ASM (Additional Surveillance Measures) is a regulatory mechanism used by stock exchanges to monitor and control the trading activity. The goal is to enhance market integrity, reduce risks, and protect investors from unusual price volatility or potential manipulation. Exchanges identify stocks for inclusion in the ASM framework based on objective criteria such as price and volume variation, market capitalization, and volatility. Once a stock is under ASM, it is subject to special monitoring and may have stricter trading rules, such as higher margin requirements, reduced price bands, or a change to trade-for-trade settlements.