Yi Li Hua has put forward a proposal suggesting that trading platforms should create a Liquidity Reserve Fund. This initiative aims to safeguard against extreme market conditions that could lead to significant liquidity depletion. The establishment of such a fund could serve as a vital safety net, ensuring that trading platforms maintain adequate liquidity even during turbulent times. By having a dedicated reserve, these platforms would be better equipped to handle unexpected fluctuations in the market, thereby protecting both their operations and their users. The importance of liquidity in trading cannot be overstated, as it directly impacts the ability to execute trades efficiently and effectively. Yi Li Hua’s proposal highlights the need for proactive measures in the financial sector to mitigate risks associated with market volatility. Implementing a Liquidity Reserve Fund could ultimately enhance the stability of trading platforms and foster greater confidence among investors and traders alike.
