Get Ready for a Friday Trading Frenzy
- Annual rebalance usually one of year’s busiest trading days
- Jefferies sees seamless transition, with low volatility
Traders work on the floor of the New York Stock Exchange.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
Friday’s session will probably be one of the busiest of the year for equity traders as the annual Russell reshuffle is set to take effect.
The FTSE Russell’s rebalancing of stock indexes reliably boosts trading. At the same time, it rarely triggers big price swings in the market. Last year’s adjustment, which coincided with the Brexit vote, helped fuel a jump in volume to more than 15 billion shares, the highest total of the year. In four of the last five years, reconstitution day ranked in the 10 busiest trading sessions, data compiled by Bloomberg show.