Wednesday, May 27, 2009

`Circuit breakers' in financial markets, continued

Last Tuesday, I had a piece in Financial Express titled Time to question circuit breakers. On this subject, see related materials: by Vandana in Business Standard; in Mint; Nishanth Vasudevan in Economic Times; Niti Kiran in Indian Express; K. Venkatasubramanian in Hindu Business Line; and this PTI story in Economic Times. Update: See Joydeep Ghosh and Palak Shah in Business Standard.

4 comments:

  1. You might want to educate the author of the article by asking her to change "call option" to "call auction" (as you have said in your post) I guess for her the two things mean one and the same.

    ReplyDelete
  2. Under "Alternatives to NSE and Nifty Futures", are you implying that those trading floors have lost listings on the sole basis of circuit breakers? Doesn't the US where these ADR's are listed have circuit breakers on their main floors?
    Alternatives to circuit breakers assumes the mass selling/buying eliciting circuit breakers is done rationally, when it's obviously the complete opposite. Market conditions seem to have always been tempered by the breakers. My two experiences: when I was last in India in Jan 08 and on 9/11 here in the states. It seems the breakers always fulfilled their purpose

    ReplyDelete
  3. Under "Alternatives to NSE and Nifty Futures", are you implying that those trading floors have lost listings on the sole basis of circuit breakers? Doesn't the US where these ADR's are listed have circuit breakers on their main floors?
    Alternatives to circuit breakers assumes the mass selling/buying eliciting circuit breakers is done rationally, when it's obviously the complete opposite. Market conditions seem to have always been tempered by the breakers. My two experiences: when I was last in India in Jan 08 and on 9/11 here in the states. It seems the breakers always fulfilled their purpose.

    ReplyDelete

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