Securities and Exchange Commission Chairman Jay Clayton said Monday that stock markets should continue to operate when asked whether exchanges should suspend trading because of volatility triggered by the spreading coronavirus.
“Markets should continue to function through times like this,” Mr. Clayton said in an interview. “We’ve been in contact with the various institutions” across Wall Street, he said.
Mr. Clayton was responding to speculation that stock exchanges might suspend trading as the coronavirus continues to fuel wild market swings and banks slash growth forecasts. U.S. equity exchanges plunged at the opening bell on Monday, triggering circuit breakers that halted trading across stock markets and signaling another bruising week for companies and their investors.
Functioning well
Despite the gyrations, Mr. Clayton said, markets have functioned well “over the past two weeks of a very volatile time.” He said the SEC had been working with Wall Street firms to ensure they have appropriate plans in place to endure the pain.
Mr. Clayton said the current environment differs from previous market shocks, such as the 2008 credit crisis or the terrorist attacks of September 11, 2001, partly because of steps that have been taken to bolster the financial industry since then.
“I think our banks are in a much stronger position today than they were then,” Mr. Clayton said in the interview. “This is a demand and supply shock,” he said, adding that he’s concerned businesses might not have access to all the credit they need.
Nasdaq Inc. Chief Executive Officer Adena Friedman echoed Mr. Clayton’s comments about markets being more resilient than they were during past crises. She also said that trading should continue for the sake of investors and also to allow companies to raise needed capital.
“It is critically important that the markets stay open at this time, as opposed to trying to take breaks in the middle,” Ms. Friedman said. “I think that’ll just push off the situation a little bit, but actually could create other pent-up issues.”
FINRA barred the advisor, Sung Moo Cho, last month.
A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.
The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.
The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy
New Preqin-powered benchmarks add transparency to private equity and credit performance across BlackRock's platforms.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
