Markets must stay open, US financial bodies urge

US treasury secretary Steven Mnuchin has suggested a shorter trading day may be needed given the extreme volatility in markets as investors dump shares in the face of an economic downturn due to coronavirus.

“Even persistent rumours about closing the markets are themselves causing adverse effects. Market participants are taking steps, which they otherwise would not, to mitigate against a market closure,” the signatories said in a separate letter to Mnuchin, the Securities and Exchange Commission (SEC), and to the Commodity Futures Trading Commission.

Other signatories are the Managed Funds Association, US Chamber of Commerce, Securities Industry and Financial Markets Association, American Cotton Shippers Association, Bank Policy Institute, Commodity Markets Council, FIA, Financial Services Forum, Investment Company Institute, Alternative Investment Management Association and the World Federation of Exchanges.

Earlier this week, the Federation of European Securities Exchanges also said markets should stay open.

Bank of England Governor Andrew Bailey said on Thursday markets had bordered on being disorderly but should remain open.

Reuters