Thursday, August 02, 2007

It happened one night

Interesting opinion on restarting pre-market trading in stock exchanges.

They say it acts as a good gauge of demand and supply, helps market making with better price discovery for a stock (as in book-building), factors in aftermarket/overnight newsflow etc. In effect, it’s being seen as a framework for an efficient market.

Better still. Why close the market at all?

Scary. Imagine a trader that got lucky earlier during the day getting back to the dealing room and punch in orders at will... What would you call that brokerage/ fundhouse that was a billion plus the day before that goes bust overnight ?

One night stand…? No, that’s already taken.

Labels: ,


Post a Comment

<< Home