Disorderly Market

(redirected from Disorderly Markets)

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 ?
The Fed's slow pace is warranted, he argued, by the knowledge that premature or excessive moves could precipitate disorderly markets or recession.
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."
spot foreign exchange interventions to stabilize financial markets in the wake of disruptions such as the Kennedy assassination and the Cuban Missile Crisis (Bordo, Humpage, and Schwartz, 2007) presaged interventions to counter "disorderly markets" in the 1996-2011 period.
FSP FAS 157-4 offers insights into determining when "the volume and level of activity" for asset transactions have "significantly decreased" such that quoted prices "may not be determinative of fair value because of increased instances of transactions that are not orderly." A number of factors, which are illustrative but not exhaustive, are suggested that, if present, could imply disorderly markets and hence unreliable price data.
It said yesterday: "Extending the regime will continue to help reduce the potential for abusive behaviour and disorderly markets.
When the ban was introduced, FSA chief executive Hector Sants said that while short-selling was a legitimate investment technique in normal market conditions, "extreme circumstances" had 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.
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.
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.
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.
Disorderly Markets -sets out the powers needed by market authorities to intervene in the markets to address disorderly conditions;