They also developed new rules, known as circuit breakers, allowing exchanges to halt trading temporarily in instances of exceptionally large price declines.12 For example, under current rules, the New York Stock Exchange will temporarily halt trading when the S&P 500 stock index declines 7 percent, 13 percent, and 20 percent in order to provide investors «the ability to make informed choices
during periods of high market volatility.»
Volatility control strategies,
in periods of high market volatility, could limit your participation in market gains; this may conflict with your investment objectives by limiting your ability to maximize potential growth of your policy value and, in turn, the value of any guaranteed benefit that is tied to investment performance.
The FBI agent quoted in the DOJ complaint stated: «I know that SARAO preferred to trade during
periods of high market volatility.»
These funds seek to reduce risk during
periods of high market volatility, like Brexit, and in the past, they have delivered similar long - run returns when you look at a full market cycle, according to Bloomberg data.
During
periods of high market volatility, the exchanges may increase initial margin requirements to any level they deem appropriate, and brokers may decide to increase initial margin levels above those required by law.
They also developed new rules, known as circuit breakers, allowing exchanges to halt trading temporarily in instances of exceptionally large price declines.12 For example, under current rules, the New York Stock Exchange will temporarily halt trading when the S&P 500 stock index declines 7 percent, 13 percent, and 20 percent in order to provide investors «the ability to make informed choices during
periods of high market volatility.»
Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during
periods of high market volatility, providing policy owners with the opportunity for smoother performance and better risk adjusted returns.