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Q: Do we need to close financial markets on 30 Jun?
A: Yes.
Let me explain.
DDR proposal is to be presented and debated in COPF/parliament.
This is the single most significant piece of information relating to the economy in our history.
While this is debated, there’ll be various statements made by many. But as in the past, those are likely to differ from the final (actual) outcome.
Given the sensitivity and severity, such statements have the power to (unnecessarily) move the markets:
• GSec (interest rates),
• FX (exchange rate),
• equity (share prices).
Such statements will take the markets on a roller coaster ride. Undue volatility is not in the best interest of investors.
Therefore, best course of action is to ensure that markets receive the final version of this proposal, after due deliberations and amendments, if any.
Then, markets can digest this final and approved version, and respond (reprice) accordingly.
Until such time (which should be as short as possible), best strategy is to close financial markets, i.e. declare a bank holiday.
Even @CSE_Media freezes trading of a counter when price sensitive information is disseminated during trading hours.
Why should financial markets be any different?
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