NYSE Wants to Abandon Rule Some Say Contributed to Wild Session
- Rule 48 was invoked on Aug. 24, before prices went haywire
- BlackRock says the rule contributed to that day's problems
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The New York Stock Exchange wants to eliminate a rule some blame for creating confusion in the U.S. equity market on Aug. 24, when prices swung wildly during the opening minutes of trading.
The item in question is Rule 48, which the NYSE declares on volatile days with the goal of ensuring orderly trading. But it may have backfired on Aug. 24 by leaving traders in the dark about prices.