Mr. Chairman , thank you for calling this hearing. This is a timely issue, and clearly an important one as well. The United States is home to some of the leading financial markets of the world. Indeed, these institutions are known for being the deepest and most liquid of all the world markets. In fact, the New York Stock Exchange often boasts, "The World Puts Its Stock in Us."
However,, a market is not a market if it is not open for trade. When financial markets of the magnitude of those in the United States close for any other reason than the 4:00 closing bell, questions arise, impatience ensues, and if halted long enough, panic follows.
I remain unconvinced that program trading collars are necessary, much less circuit breakers that halt market trading. Some argue that closing the markets permits individuals to reassess information. I believe the best mechanism to reflect information is the price mechanism itself. When we talk about protecting "market participants," who are we talking about? Individual investors or Wall Street insiders?
While I look forward to the testimony today, I hope
that the individuals involved will keep in mind that free,
open and unimpeded markets are the most efficient way
to allocate resources and that no amount of regulation can
provide the wisdom and discipline of the markets.
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