'Paralyzing Volatility' Means Trouble for Wall Street Giants
- Economic worries exacerbate `structural' shift in trading
- More shocks, less liquidity reflect change in nature of market
Investors Prepare for Volatility, Sharp Market Selloff
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There’s plenty of volatility, but what happened to the volume?
From stocks to currencies and bonds, the upswing in turbulence to start the year is chasing all but the bravest traders from financial markets. Despite the recent rebound in U.S. equities, volume in the S&P 500 Index is down 23 percent. Speculative bets on the direction of currencies have also dropped to the lowest in two years, while average daily trading among dealers in U.S. Treasuries is close to a seven-year low.