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#1
11-27-2009, 11:33 AM
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NYSE Invokes Rule 48 In Anticipation Of Extreme Volatility
The NYSE hedged its bets earlier by invoking the rarely used 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 delay opening securities on the exchange." The full disclosure was made on the NYSE blog:
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: 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; Evidence of pre-opening significant order imbalances across the market; Government announcements; News and corporate events; and, Any such other market conditions that could impact floor-wide trading conditions. And some other "do not panic, we have nothing under control" information dissemination by the NYSE: The invocation of Rule 48 is in effect only for today. Previously, the NYSE invoked the rule on 11 March, 2008; 23 Jan., 2008; 22 Jan., 2008; and 12 Dec., 2007. The rule was approved by the Securities and Exchange Commission on 6 Dec., 2007. Now add 17 March, 2008 to the list. I kind of had an uneasy feeling all weekend about Bear Stearns, and felt even worse upon seeing the announcement on Sunday night. To my train buddy at Bear Stearns and his colleagues, I'm sorry to see this happen. And just for reference, here's a link to our circuit breakers. Here's hoping we don't need them today. Or any other day, for that matter. Good luck today, everyone. Good luck indeed. FAIR USE http://www.zerohedge.com/article/nys...eme-volatility MamaDel
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“He who is unaware of his ignorance will be only misled by his knowledge.” (Richard Whately). John 8:45, “And because I tell you the truth, ye believe me not.” —Jesus Christ Galatians 4:16, “Am I therefore become your enemy, because I tell you the truth?” —The Apostle Paul 
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#2
11-27-2009, 11:39 AM
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The only "source" link indicates this original article is from
March 17. I do not think it is credible. http://exchanges.nyse.com/archives/2008/03/48_today.php
__________________
"Obama Fighting Fox News Harder Than Taliban" ~ O'Reilly Welcome to the Great Opression! *~* Common Sense *~* {The Case Against an Out-of-Control Government, Inspired by Thomas Paine}  For the first time in my adult life, I'm NOT proud of my country!
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#3
11-27-2009, 02:45 PM
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Quote:
http://www.nyse.com/equities/nyseequ...erts_New.shtml Expand All Collapse All Time Date Impact Services Impacted Category Message 09:10 AM 27 Nov 09 Market Data & Trading Rule 48 Rule 48 Invoked The NYSE and NYSE Amex cash markets will invoke Rule 48 for this morning's opening. Mandatory opening indications are therefore not required. See overview of Rule 48. MamaDel
__________________
“He who is unaware of his ignorance will be only misled by his knowledge.” (Richard Whately). John 8:45, “And because I tell you the truth, ye believe me not.” —Jesus Christ Galatians 4:16, “Am I therefore become your enemy, because I tell you the truth?” —The Apostle Paul
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#5
11-27-2009, 03:15 PM
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I see that the equity markets are closed now. I thought the trading day would be of normal length.
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#6
11-27-2009, 03:17 PM
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Well the markets closed now but from what I gather:RULE 48
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. 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: 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; Evidence of pre-opening significant order imbalances across the market; Government announcements; News and corporate events; and, Any such other market conditions that could impact floor-wide trading conditions. The last time Rule 48 was invoked(March 17th 2008)it had to do with the collapse of Bear Stearns...thats why this made me nervous. Why did the feel the need to invoke it today? Dubai? Perhaps. MamaDel
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“He who is unaware of his ignorance will be only misled by his knowledge.” (Richard Whately). John 8:45, “And because I tell you the truth, ye believe me not.” —Jesus Christ Galatians 4:16, “Am I therefore become your enemy, because I tell you the truth?” —The Apostle Paul
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#7
11-27-2009, 06:10 PM
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It was my understanding that the markets closed early because of the holiday.
With Dubai in the news so much, my bet is Dubai was the trigger for Rule 48. Just a guess...
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