Thursday, May 20, 2010

"BULLETIN: NYSE Invokes Rule 48"

UPDATE: May 25, They did it again.
Original post:
From Economic Policy Journal:
Looks like it is going to be a bloody opening this morning.

The NYSE has invoked Rule 48,which allows the NYSE to suspend the requirement to disseminate price indications at the open. This makes it easier and faster to open stocks.

Buckle your seat belts.

Here is the statement from the NYSE:
Today, New York Stock Exchange has invoked Rule 48, which provides the exchange with the ability to suspend the requirement to disseminate price indications and obtain floor-official approval prior to the opening when extremely high market-wide volatility could cause floor-wide delays in opening of securities on the exchange.

Here's CNBC on the rule:
Rule 48 is intended to be invoked only in those situations where the potential for extreme market volatility would likely impair floor-wide operations at the exchange by impeding the fair and orderly opening of securities. Accordingly, the rule sets forth a number of factors to be considered before declaring such a condition, including...MORE