OHHHH ARE YOU KIDDING ME, USING RULE 48 TO "EASE MARKET OPEN"

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S2007S

what the fuck.....just let it collapse, stop with these fucking programs and rules, just let the market be a market for once....



NYSE invokes rarely used rule on market volatility to ease market open
Jenny Cosgrave | @jenny_cosgrave
1 Min Ago



If you’re interested. Here’s the text of “Rule 48,” which the NYSE invoked to smooth the open today. Here’s the Cliffs Notes version:

(a) In the event that extremely high market volatility is likely to have a Floor-wide impact on the ability of [Designated Market Makers] to arrange for the fair and orderly opening, reopening following a market-wide halt of trading at the Exchange, or closing of trading at the Exchange and that absent relief, the operation of the Exchange is likely to be impaired, a qualified Exchange officer may declare an extreme market volatility condition with respect to trading on or through the facilities of the Exchange.

(b) In the event that an extreme market volatility condition is declared with respect to trading on or through the facilities of the Exchange, a qualified Exchange officer shall be empowered to temporarily suspend at the opening of trading or reopening of trading following a market-wide trading halt: (i) the need for prior Floor Official or prior NYSE Floor operations approval to open or reopen a security at the Exchange (Rules 123D(1) and 79A.30); and/or (ii) applicable requirements to make pre-opening indications in a security (Rules 15 and 123D(1)).
 
In a historic move, the New York Stock Exchange invoked the little-used Rule 48 to pre-empt panic selling at the stock market open on Monday. This followed a dramatic drop in pre-market open futures, with the Dow Jones Industrial Average futures falling more than 700 points.

The goal of Rule 48 is to ensure orderly trading amid financial market turbulence. It's only used in the event that extremely high market volatility is likely to have a floor-wide impact on the ability of designated market makers (DMMs) to disseminate price indications before the bell.

Unlike a circuit breaker that stops stock trading, Rule 48 makes it easier and faster to open the stock markets when there are fears that the market could open with a lot of volatility that would disrupt trading. Futures trading on Monday morning had the Dow Jones Industrial Average down by more than 700 points.


Rule 48 speeds up the opening by suspending the requirement that stock prices be announced at the market open. Those prices have to be approved by stock market floor managers before trading actually begins. Without that approval, stock trading can begin sooner.

To invoke Rule 48, an exchange would have to determine that certain conditions exist that would cause market disruptions. Those conditions include:

  • volatility during the previous day's trading session
  • trading in foreign markets before the open
  • substantial activity in the futures market before the open
  • the volume of pre-opening indications of interest
  • government announcements
Rule 48 was approved by the Securities and Exchange Commission on Dec. 6, 2007 and has been rarely used.

Rule 48 was invoked a few times in recent years, including on Tuesday, January 22, 2008 and on Thursday, May 20, 2010. In 2008, the stock markets were subject to great volatility over fears of a global recession and in 2010, the European debt crisis caused panic buying and selling. The rule was also invoked during the August-September 2011 time frame, when European debt crisis fears again roiled the markets, and in early 2015, when massive snowstorms swept across the U.S.
 
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