Rule 48

Rule 48, also known as Exemptive Relief — Extreme Market Volatility Condition,[1] is a mechanism used by the New York Stock Exchange to ease market opening while volatility is high. It may have the effect of pre-empting trading at disrupted prices,[2] as the designated market makers do not have to disseminate price indications prior to the opening bell.[3][4]

History

Rule 48 was approved by the U.S. Securities and Exchange Commission on December 6, 2007.[2][4] It was invoked 77 times from 2008 to September 2015, but only used a few times.[2] For example, it was used on January 22, 2008 and May 20, 2010,[2][4] as well as September 1, 2015.[5]

References

  1. ↑ "Dealings and Settlements (Rules 45—299C): Delivery Dates on Exchange Contracts". New York Stock Exchange. Retrieved September 3, 2015.
  2. 1 2 3 4 Lenzo, Krysia; Koba, Mark. "The little-used NYSE rule that can tame a wild market". CNBC. Retrieved September 3, 2015.
  3. ↑ Watts, William L. (September 1, 2015). "NYSE invokes Rule 48 in effort to smooth market open". MarketWatch. Retrieved September 3, 2015.
  4. 1 2 3 Phillips, Matt (May 20, 2010). "Exactly What is ‘Rule 48′". MarketBeat. Retrieved September 3, 2015.
  5. ↑ Wells, Nicholas. "How to trade the NYSE's Rule 48". CNBC. Retrieved September 3, 2015.


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