Disorderly Market

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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 ?
At Cannes, the G20 Leaders also stipulated that Market Authorities should be granted effective intervention powers to address disorderly markets and prevent market abuses.
As for the necessity of authorities stepping into the market to address excessive volatility in exchange rates, he said, "Intervention can be used to avoid disorderly markets," but added, "That should be in the context of an exchange rate system that remains market-determined.
It said yesterday: "Extending the regime will continue to help reduce the potential for abusive behaviour and disorderly markets.
Continuing the disclosure obligations as we propose will reduce the potential for abusive behaviour and disorderly markets.
Financial Services Authority chief executive Hector Sants said: "While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets.
Financial Services Authority chief executive Hector Sants, said: "While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets.
Financial Services Authority (FSA) chief executive Hector Sants said: "While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets.
FSA chief executive Hector Sands, who will review the decision next month, said: "While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets.
However, it can intervene, buying or selling, to correct or limit deviations from a desired exchange rate, limit volatility of disorderly markets, supply foreign exchange and accumulate foreign reserves.
Treasury and the Federal Reserve identify disorderly markets subjectively, relying on a mutable set of macroeconomic and financial criteria.
Disorderly Markets -sets out the powers needed by market authorities to intervene in the markets to address disorderly conditions;
FSA chief executive Hector Sands said last night: "While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets.