SecondMarket, an Exchange Lacking Volatility

This article confuses volatility with liquidity.

Restrictions on who can buy/sell and how often increase volatility at the expense of liquidity because it shrinks the potential pool of buyers and sellers. Real volatility is not waking up one morning to see that your publicly traded stock that you can sell at a moments notice is down 10%, it's waking up to see that no one wants to buy your illiquid assets at any price.