Rob, your point on friction is spot on and is in fact what happens in the public markets when a stock falls too suddenly. There are regulations that impose a “time out” when certain conditions are met.
And I think these sort of regulations and policies were crafted after some automated systems went hay wire a while back, so this is a problem space our regulators could be proactive in protecting. Assuming there is now a universal backstop on deposits (implied or not), maybe the government can regulate halts to funds transfers for a period of time, etc
Rob, your point on friction is spot on and is in fact what happens in the public markets when a stock falls too suddenly. There are regulations that impose a “time out” when certain conditions are met.
And I think these sort of regulations and policies were crafted after some automated systems went hay wire a while back, so this is a problem space our regulators could be proactive in protecting. Assuming there is now a universal backstop on deposits (implied or not), maybe the government can regulate halts to funds transfers for a period of time, etc