3 ms·
It’s a very temporary restriction not at all comparable. It applies only until the next uptick and is essentially a strengthening of the circuit breaker rules.
by slededit 8y ago
It’s a very temporary restriction not at all comparable. It applies only until the next uptick and is essentially a strengthening of the circuit breaker rules.
These rules are designed to slow trading down on the order of minutes to hours so market participants can catch up and make rational decisions. This is completely different than broad market distortions pervasive in both Japan and China - both in intent and effect.
- panarky 8y ago> These rules are designed to slow trading down If this were true, then there would be a symmetric rule to restrict purchases when prices increase. Since the rule only restricts sales and not purchases, its purpose must be to prevent price declines, not to regulate the velocity of trading.
- slededit 8y agoUnlike with upswings, down swings come with margin calls which can cause downward spirals. The market can certainly get irrational on the upswing as well but the feedback mechanisms are more muted and slower.