BRUSSELS, March 24, 2020 /PRNewswire/ -- In an unprecedented move, the World Financial Association has issued a call today for a general shut-down of the financial markets and trading platforms for a period of two weeks.
According to the WFA, this comes because while authorities throughout the world have asked all main economies participants to shut down gradually and in some countries completely, "Financial markets are continuing to run in the most ORDINARY manner like nothing happened, destroying trillions of values every day on NO BASIS as they trade on virtually NO KNOWLEDGE, triggering panic of the public and businesses."
According to the WFA, throughout the Coronavirus outbreak, "Companies are making announcements and giving guidance on strategies on which they have zero control and visibility," and therefore, "The System is wiping out in financial markets a great deal of what central banks and governmental agencies are pouring into it."
The letter, which is addressed to all Central Bank Governors and Heads of States, articulates that at this point in time, the financial system would be wise to admit its lack of understanding of the force majeure situation. Consequently, "Having in mind the protection of billions of investors and of the whole banking and financial system, the WFA is arguing to have a temporary closure of the trading platforms immediately!"
The letter closes with an admonishment about the financial systems obligations, "We cannot pretend to run the largest industry in the world as if we were in ordinary times, thus acting in complete disconnect from what is happening."
For more information, please contact John D. Lowrence, General Secretary: [email protected]
SOURCE World Financial Association