M588 – Covid-19 Stock Market Suspension Motion 2020

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Andrew97
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M588 – Covid-19 Stock Market Suspension Motion 2020, CatusStarbright MP
This House recognises that the stock markets have plummeted globally since the beginning of the Covid-19 pandemic, and that, as a result, there has been talk of the suspension of the stock market.

As things stand, the stock markets should remain open to allow companies access to capital, especially those who are aiding the fight against the coronavirus. Such access to capital can be essential to operations.

Furthermore, as Stacey Cunningham (president of the New York Stock Exchange) tweeted, closing the stock markets would not change the cause of the market decline, and would reduce investor’s access to their investments which would only compound market anxiety.
However, this House acknowledges that at some point this could be an option to employ, if we reach the point at which the benefits outweigh these drawbacks.

This would need to be carefully considered, and would require international coordination to ensure that investors in different locations are not unfairly disadvantaged if one stock exchange is closed while others remain open.

This House therefore calls on the government to begin discussions with other governments around the world to ensure that, should this measure become necessary, it could be implemented with as little delay as possible and with cohesive cooperation to mitigate its impacts.
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Jammy Duel
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Or we just say "staying open, we've overreacted enough"

As for the matter of accessing capital, rather dubious point given the capital will mostly be coming from either issuing bonds or via banks, not via issuing shares.
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Miss Maddie
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Why would China agree to this?
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Connor27
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I don’t see how this would be enforceable worldwide unfortunately. No.
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Jammy Duel
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(Original post by Connor27)
I don’t see how this would be enforceable worldwide unfortunately. No.
Says a lot that the issue isn't with closing the LSE, despite it being counter productive, but the fact that you cannot force others to close theirs.
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LiberOfLondon
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Well this is a first, a motion where the text of the motion says why the motion is a bad idea...

As Connor said it would not be enforceable worldwide and would be impractical (China is beginning to recover from the Wuhan coronavirus - it would be completely and utterly stupid to keep their markets closed). Nay.
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CatusStarbright
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(Original post by Jammy Duel)
Or we just say "staying open, we've overreacted enough"

As for the matter of accessing capital, rather dubious point given the capital will mostly be coming from either issuing bonds or via banks, not via issuing shares.
Actually, on the 16th March, Sky News reported that a small health company went public, so there are companies still raising capital this way in these uncertain times.
(Original post by Connor27)
I don’t see how this would be enforceable worldwide unfortunately. No.
(Original post by LiberOfLondon)
Well this is a first, a motion where the text of the motion says why the motion is a bad idea...

As Connor said it would not be enforceable worldwide and would be impractical (China is beginning to recover from the Wuhan coronavirus - it would be completely and utterly stupid to keep their markets closed). Nay.
It's not about enforcement, the motion is not calling for other governments to close stock markets (should the necessity arise). It asks our government to discuss this with other governments.
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quirky editor
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I don't understand what this motion is calling for. Do you want the stock markets to remain open or not? Regardless, we can't really pressure the world to do anything at this point.
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SoggyCabbages
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What a nothing motion, complete waste of time. Not enforceable Worldwide with all the different agendas that every country has.

Nay.
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Rakas21
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Mr Speaker, i shall abstain.

While i agree with the sentiment, this is the choice of sovereign governments.
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04MR17
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An excellent motion that I hope the house supports!
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CatusStarbright
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(Original post by quirky editor)
I don't understand what this motion is calling for. Do you want the stock markets to remain open or not? Regardless, we can't really pressure the world to do anything at this point.
Yes, with the option of closing in the future. This option is made more viable by the call to discuss with other governments.
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barnetlad
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Money needs to be raised for government borrowing. Surely stock and bond markets need to be open, even if everyone in that sphere works from home?
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CatusStarbright
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(Original post by barnetlad)
Money needs to be raised for government borrowing. Surely stock and bond markets need to be open, even if everyone in that sphere works from home?
Yes exactly.
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Jammy Duel
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(Original post by barnetlad)
Money needs to be raised for government borrowing. Surely stock and bond markets need to be open, even if everyone in that sphere works from home?
Bond auctions don't happen on the stock exchange, and one would hope that is quite obvious that it is the case
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Jammy Duel
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(Original post by CatusStarbright)
Actually, on the 16th March, Sky News reported that a small health company went public, so there are companies still raising capital this way in these uncertain times.


It's not about enforcement, the motion is not calling for other governments to close stock markets (should the necessity arise). It asks our government to discuss this with other governments.
How many flotations are there now vs a normal March? I would be very surprised if people aren't putting off flotation where they can until Boris has grown a pair and stopped saying that he would shut down the economy and kill a bunch of people later to avoid them dying now.
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The Mogg
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Only just noticed this was here (silly me...) but it'll have to be a No, for the reasons already mentioned.
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Aph
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I am rather surprised at the reaction to this motion which I thought would be rather uncontentious. It simply asks the government to keep stock markets open, but suggests that if we need to close them we should seek to get international agreement to do so. If we cannot get such agreement then we should keep the markets open.
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The Mogg
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(Original post by Aph)
I am rather surprised at the reaction to this motion which I thought would be rather uncontentious. It simply asks the government to keep stock markets open, but suggests that if we need to close them we should seek to get international agreement to do so. If we cannot get such agreement then we should keep the markets open.
Welcome to MHoC, where everything ever said ever is contended.
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Jammy Duel
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(Original post by Aph)
I am rather surprised at the reaction to this motion which I thought would be rather uncontentious. It simply asks the government to keep stock markets open, but suggests that if we need to close them we should seek to get international agreement to do so. If we cannot get such agreement then we should keep the markets open.
Or we should drop the notion of closing them entirely and not even entertain the absurd motion of international agreement.

This is the sort of naive internationalist thinking that we should expect from a lib dem clone.
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