How Circuit Breakers Can Let Cooler (Human) Heads Prevail
That's partly why the NYSE still has actual people working on a real, live trading floor. A simple manual cross-check of prices can help mitigate volatility "if things get out of whack," says Doreen Mogavero, CEO of Mogavero Lee & Co., in a video interview from the floor of the NYSE (see below). Mogavero, who happens to be a human being and head of floor trading at the broker/dealer she founded 21 years ago, says additional circuit breakers are to be welcomed in a world where machines churn trades in nanoseconds.
"We can go two ways," Mogavero says. "Either everyone can stop trading at the same time, or everyone can trade continuously. Our belief is that if you take a short, brief period of time and stop, price discrepancy gets mitigated by the other side of the trade."