Rule 48, also known as Exemptive Relief — Extreme Market Volatility Condition, is a mechanism used by the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...

to ease market opening while volatility is high. It may have the effect of pre-empting trading at disrupted prices, as the designated

market maker A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the ''bid–ask spread'', or ''turn.'' The benefit to the firm is that i ...

s do not have to disseminate price indications prior to the opening bell.

History

Rule 48 was approved by the

U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

on December 6, 2007. It was invoked 77 times from 2008 to September 2015, but only used a few times. For example, it was used on January 22, 2008 and May 20, 2010, as well as September 1, 2015.

References

New York Stock Exchange {{Finance-stub