Although global growth estimate is cut, U.S. economy pegged at slow but steady grow.
October 7, 2015
More Regulations For Big Banks or Wall Street tax?
November 12, 2015
Show all

Exchange Traded Funds (ETFs) are going to be “looked into” due to the recent market sell off. Security and Exchange Commission will closely examine rules and regulations affecting the ETFs. “We’re going to have tons of data to look at; data about the ETFs, data about the performance of Rule 48” said SEC Commissioner, Dan Gallagher. He also mentioned that Rule 48, which made sense in 2007, might not necessarily be beneficial now; therefore it needs to be reviewed. According to CNBC, “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”. Rule 48 allows ETFs to open without the price quotes ahead of time; however, critics blame Rule 48 for recent trading halts imposed when shares fell to various levels. Although Gallagher is a big supporter of ETFs, he acknowledged that: “The data needs to be studied to see if there are any remedies that should be made.”

Leave a Reply

Your email address will not be published. Required fields are marked *