Registered: Dec 2008
10-30-12 12:44 AM
Quote from rallymode:
Would it be better to have another flash crash scenario with parts of the infrastructure failing and no human beings being there to support it? I am sure the exchanges didn't make the call to close lightly, they are losing alot of revenue on this. Take the extra days off and relax. More important things in life then making money for your investors.
The two choices shouldn't be:
- shut down,
- have another flash crash.
The alternative choice to shut down should be a functioning electronic marketplace. What if some macro event occurs tomorrow..? What if Spain suddenly defaults, and there are no functioning markets for anyone to participate in, no way for the market to take on its proper roles of risk transfer + price discovery?
Clearly at some point in the past, we couldn't function without the physical participation of specialists. But we sure as heck should be past that point now, by 2012. That was the commitment (implicit and explicit) after 9/11.
And if we still aren't ready... will we ever be ready? Are the CME + exchanges ever going to get it right?