Coronavirus wrecking havoc on trading world. Volatility, cancelled events, and tele-work were just three of the results for the trading world of coronavirus.
The Dow Jones Industrial Average (DJIA) closed on Friday March 6, 2020, at 25,867.40 and on Thursday March 12, 2020, it was closed at 21,197.90, a move down of 22% in four trading days.
For the trading days of May 9-12, the Dow Jones Industrial Average (DJIA) closed: -2,029.49, +1,183.08, -1,471.57, and -2,351.52.
Other averages showed similar volatility the FTSE, from London, opened on Monday March 9, 2020 at 6462.55 and was closed at 5,299.84 on Thursday March 12, 2020, a move down of 21.9%.
Bitcoin shed over three thousand dollars in one day trading earlier in the week.
Much of this bearish mood has been attributed to coronavirus. “Dow drops into bear territory for the first time since the financial crisis, as investors fret over coronavirus” read a headline from the USA Today on March 12, 2020.
Event cancellation went into high gear as most of the world is cancelling many large gatherings.
All pro sports in the US have been suspended.
This trend appears to be continuing.
In the same announcement, the CFTC also announced,
- The CFTC will relocate its open meeting scheduled for March 31 at the Federal Reserve Bank of Kansas City to CFTC headquarters in Washington, D.C.
- The CFTC will be postponing its LabCFTC office hours scheduled for April 1 in New York City.
The FIA Forum in Sydney, Australia has been cancelled; that event was scheduled to occur May 28, 2020.
Thus far, the FIA’s Law & Compliance Division Conference is still scheduled to go on.
That conference which serves as, “the annual touchpoint for the legal, risk and compliance professionals in the cleared derivatives industry,” according to its website, is scheduled to occur on April 29-May 1, 2020, in Washington, D.C.
Telework is recommended as much as possible.
The Securities and Exchange Commission instituted its own telework policy on Wednesday, according to an article in Government Executive.
“The Securities and Exchange Commission on Monday instructed employees at its Washington, D.C., headquarters to work remotely until further notice, after an employee began treatment for ‘respiratory symptoms.’
“Although it is not yet clear whether the employee has tested positive for the novel coronavirus, officials said mandating telework is a precautionary measure.”
Trading companies who institute telework policies may face new regulatory requirements, according to a note from the National Futures Association (NFA).
“NFA reminds swap dealer (SD) Members of their regulatory reporting obligations, including those pursuant to CFTC Regulation 23.603. In accordance with such regulatory reporting obligations, CFTC staff expects to be notified if an SD implements a teleworking plan or activates its Business Continuity Plan where such implementation or activation is for purposes other than testing.”