David Drake
Traders Magazine Online News

Why Bitcoin Continues to Rule the Crypto Market Despite its High Volatility

So, how does the highest profile cryptocurrency manage to stay on top of the market despite threats from regulators, hackers and even market pundits.

Traders Poll

Do you think the recently approved SEC access fee pilot will demonstrate rebates negatively affect routing decisions and best ex?

Free Site Registration

February 1, 2005

Taming Nasdaq Volatility

By Gregory Bresiger

Stocks become less volatile when they move from Nasdaq to the Big Board. This is according to a recent Securities and Exchange memorandum, which was authorized as part of the staff research for the Reg NMS proposal.

"On average, stocks experience a significant decline in intraday volatility upon moving from Nasdaq to the NYSE. We find the same result regardless of whether we use five-minute return intervals to compute volatility, 60-minute intervals, or any other interval between five and 60 minutes," according to the SEC's Office of Economic Analysis (OEA).

The OEA, which monitored 91 stocks for some three years [see chart], nevertheless said this suggests that, "there is a greater tendency on Nasdaq for short-term stock deviations of stock prices away from their fundamental values."