The United States Security Exchange Commission has recently passed a ruling that would allow an early day trading during volatile situations on Wall Street. The move that allows an early trade in the New York financial markets is an unprecedented move that has been made by the Security Exchange Commission in the United States of America. The American economy is still working around the tight corners to reach their desired inflation rate and their targeted national growth rate. The United States of America is one of the few nations that has endured the 2008 financial crisis, and seems to be recovering from it very quickly and effectively.
The unprecedented move
However, things still seem to be tense with uncertain global economic markets. The financial markets are still quite volatile, and seem to be susceptible to a lot of market dynamism. In light of this, the American Securities Exchange Commission has ensured that the New York Stock Exchange can now open and function a little earlier than the trade day opening during volatile situations. At the opening of the market with the daily opening bell, there must be a full disclosure of prices of stock markets within which it is traded. However, this seems to soon change, as under a volatile market situation, or any serious geo-political situations that may affect the days trade, the markets have been given that advantage. For instance, if there is a terrorist attack in the other part of the world that would certainly affect American stock prices, the markets are allowed to open a few hours early to trade.
Critics of the allowance are very skeptical about the new regulation that has been passed in favor of early trading by the Securities Exchange Commission. The critics claim that this would disallow a free market, and would in a way give the benefit of trading only to the United States. Additionally, many critics claim that a threat may be supposed for the sake of an early trade, which will result in an unfair market.
The favorable view
On the other hand, the lobbyists and proponents for the new regulation claim that the market would be better prepared for shocks and unforeseen instances, which would obviously make markets more resilient towards such unfortunate activities. Many proponents have claimed that just due to the misdoing of a few people, everyone doesn’t deserve to suffer.