Disorderly Market

Disorderly Market

A characterization of market conditions whereby there is excessive volatility at a time when there is no news. The volatility is often caused by order imbalances. In some markets, shorts trying to cover can cause disorderly conditions. If disorderly conditions arise, sometimes trading is halted.

Disorderly Market

A situation in which trading on a security is exceptionally volatile, especially when there is no apparent reason for it. A disorderly market may arise when short sellers are attempting to cover their positions, or when there is an order imbalance, among other reasons. Exchanges sometimes stop trade in a disorderly market to encourage smooth trading as much as possible.
References in periodicals archive ?
neither the Company nor any of its directors are accused of being involved in a disorderly market in the common shares of the Company.
We do not shy away from temporarily suspending trading if we believe an uninformed or disorderly market exists.
According to Moody's, the principal risks to sovereign creditworthiness across the globe are the possibility of confidence shocks from the expected rise in US interest rates, especially in the case of a disorderly market reaction, the impact of lower growth in China and the euro area, the overhang of geopolitical risks, and reform fatigue.
Korean authorities should limit foreign exchange intervention to the exceptional circumstances of disorderly market conditions and increase the transparency of their interventions in foreign exchange.
He said: "This announcement may have led to a disorderly market in shares.
a gradual shift from a less accommodative monetary policy causes a disorderly market reaction;
Policymakers should allow their exchange rates to respond to changes in the environment and act as shock absorbers, while avoiding disorderly market conditions.
As such, it is important to note that within the context of the current situation in Lebanon and the region, and as all eyes are centered on public finance issues around the world, Lebanese authorities should avoid costly policies that add pressures on the state and weaken the ability of the domestic economy to confront domestic and external shocks and contain their spillover effects with no disorderly market drifts at large.
In the annual staff report on Japan, the IMF advised the country to allow the market to determine the exchange rate, "although intervention could be used to counter volatile or disorderly market conditions.
The "Foreign Currency Directive" of the Federal Reserve System directs intervention to "counter disorderly market conditions," in cooperation with foreign central banks, consistent with the International Monetary Fund (IMF) Articles of Agreement; Article IV, Section 1 forbids attempts to remedy balance of payments problems by manipulating exchange rates.
The scheme had been due to close on October 21, but the Bank made the U-turn "in view of the current disorderly market conditions".
The scheme had been due to close on October 21 but the Bank has made the move "in view of the current disorderly market conditions".