Report of the Presidential Task Force on Market Mechanisms (Classic Reprint) - Couverture souple

United States; Presidential Task Force On Market Mechanisms

 
9781330342398: Report of the Presidential Task Force on Market Mechanisms (Classic Reprint)

Synopsis

This book explores the unprecedented events of the October 1987 global stock market crash, analyzing the precipitous market decline of nearly one third within four days of trading. Despite the extreme speed, unprecedented volume, and consequent fragility of the financial system revealed in the crash, this book demonstrates that a coordinated few critical intermarket issues could have helped prevent such a break. Addressing the one-market concept of stocks, futures, and options, the author analyzes regulatory implications, offering recommendations for coordinating intermarket issues and enhancing the integrity and competitiveness of U.S. financial markets. The author identifies the importance of a single agency overseeing critical intermarket issues and providing guidance in the face of market disorder, emphasizing the need for broad, deep expertise in the interaction of related market segments and the financial system as a whole. Through a historical analysis of trading strategies, instruments, markets, and regulations, the author argues that such an agency is essential for reducing the possibility of destructive market breaks and for dealing with such episodes effectively should they occur.

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