Opening Delays
“New York still has the ability of the designated market maker to interject himself and slow down the process” to restrain volatility, Kramer said in an interview. “That’s not necessarily a bad thing,” he said, but there is a trade-off between the ability to damp volatility “versus slowing down the process of opening or closing.”
BlackRock said in its October report that delays in the market open during periods of extraordinary volatility “are particularly harmful as they contribute to market uncertainty and alarm investors.” The firm said exchanges such as Bats and the Nasdaq were able to promptly open “in an automated fashion” on Aug. 24, when volatility spiked as unusual price moves affected many stocks and exchange-traded products, while NYSE- listed equities were subjected to “excessive delays.”
Sara Cohen, a spokeswoman for NYSE Arca, declined to comment on BlackRock’s moves.