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I can't tell if this is a bad attempt at a joke or if you actually think this would work.
by Cheer2171 3y ago
I can't tell if this is a bad attempt at a joke or if you actually think this would work.
- lmm 3y agoSome people have seriously suggested shortening trading hours, on the grounds that all the interesting trading happens at the open and especially at the close, closing prices are the ones that are reported and used for risk analysis etc.. If everyone wants to trade at the close, why not just have one "opening" auction every day, and the price from that auction is the "closing" price for the day? That also eliminates the opportunity for trying to "pick off" or "front-run" other people's orders, or "quote fade" on the other side.
- mlrtime 3y agoThese suggestions come up all the time and they are hilariously naive. You can tell these people haven't set foot near the finance market. That saying there are some markets where auctions do take place, as well as RFQs, etc. They work well in illiquid markets.