Nasdaq is breaking trades of certain stocks that were up huge on the open; and sending them back. Apparently too many idiots put market orders in the system to cover shorts given the new rules and we saw financials and other heavily shorted stocks rip. we must have made 20 trades that have been broken. Most trading desks at the brokerages are probably freaking out.
Update From The Nasdaq:
From: Trader Website [mailto:traderfeedback@nasdaq.com]
Sent: Friday, September 19, 2008 1:05 PM
To: traderfeedback@nasdaq.com
Subject: Multiple Stock Ruling Additional Ruling
Importance: High
NASDAQ Operations has recently updated the status of the following NASDAQ Market System(s) to the NASDAQ Trader website:
Pursuant to rule 11890(b), NASDAQ, on its own motion, will cancel all trades greater than 20% away from the prior day’s close executed today between 9:30 and 10:30 a.m. ET. This decision cannot be appealed. MarketWatch has coordinated this decision with other UTP Exchanges except CBSX, NYSE & AMEX. NASDAQ will be canceling trades on the participant’s behalf. This decision cannot be appealed. The stocks affected are as follows with the reference price (previous close) to calculate the high & low break point: ZION ($45.22) The list of reference points with high and low break points will be posted on NASDAQTrader.com.
According to a tipster who works for the b’day boy, the NYSE is implementing the same policy, on all listed stocks.
Maybe Bruce Willis should have done the trade?
Where’s Carney’s farewell?
First.
I am a broker in VA with an MBA and a CFA. What is this Nasdaq?
Witnesseth:
http://www.nasdaqtrader.com/Trader.aspx?id=MarketSystemStatus
boring.
Its on the internet – it must be true.
@5– only boring if you didn’t want to make money on the jump this morning, which some of us did.
OMG,I am a broker/cfa/mba in Virginia, and I put in market orders to cover my short positions (given the new rule). Can you tell me if these trades will be scratched? If so, will my $9.99 be refunded?
Sounds like the shorts are having their lunches and their undershorts eaten today. This is a good thing. Couldn’t happen to a nicer bunch.
The Guy from Delaware
Don’t be worried about the Fed’s lending to ailing US firms!
Hank Paulson ran GS, remember:
1. Take equity positions in beaten down financials.
2. Take unilateral action to boost those financials.
3. Ban short selling against those financials.
4….
5. Profit.
TOGD – what you up to this weekend?
@7
Good job might I suggest you go back to finance.yahoo.com and share your great news with them.
so now you cant make money on the up or the down
What are you all doing this weekend?
I’m gonna get cracked up and beat my wife.
you?
This is true..our desk had a bust in MI
I’m going to buttrape/roleplay with the guy from delaware. Cheers.
The actions of the Fed are starting to remind me of another business model that was brilliant in theory, but difficult to execute in practice. Observe:
http://upload.wikimedia.org/wikipedia/en/d/dd/Gnomes_plan.png
This wasn’t the FED. just nasdaq applying a long standing rule.
http://www.cchwallstreet.com/NASDAQTools/PlatformViewer.asp?selectednode=chp%5F1%5F1%5F5%5F4%5F8%5F12&manual=%2Fnasdaq%2Fmain%2Fnasdaq%2Dequityrules%2F
Todays ruling by NASDAQ doesn’t apply to exchanges.
careful what you wish for, paulson, blankfein, mack!
-clueless
@2.
Poorly played, very poorly played.
something happened to Carney??
-clueless
And the hits keep coming….
http://www.marketwatch.com/news/story/ambac-mbia-fall-after-moody39s-warns/story.aspx?guid=%7BD8AD1BD1%2D9C48%2D4F32%2D8733%2D85F0C157EB2B%7D&dist=hplatest
What’s with the broker/mba/cfa VA jokes today? What did i miss?
24- some cold calling foo’
So, do they re-calculate the Special Opening Quotation Price that S&P options settled to today?
@22 today is his last day.
Hey JCAR you promised us a manifesto.
NOW!
I am number between 28 and 35. Who is John Carney?
@25 – thanks. CFA/MBA doing retail? niiice.
@23. That is another clusterfuck waiting to happen.
Might as well send the Benry team over there now with a blank check in hand.
I miss Carney : (
@ 24: Actually, it’s me that is being poked fun at. I’m a broker in VA WITHOUT a CFA/MBA, which is what I pointed out when I was making excuses for my lack of intricate knowledge of the short side. I’m being roundly criticized for not being smart enough to hang with the big boys on DB. The same big boys that have such a lack of marketable skills that they are currently unemployed after LEH exploded.
The knuckleheads that are alluding to my silly posts are revealing their own inepititude by showing that they didn’t bother reading. But I guess lack of attention to detail is what got all of us in this mess to begin with, eh?
32, please. the grown ups are talking.
@32 Please go away.
32 is actually the caveman from the Geico ads. Leave him alone. He’s schmart
@32, this is @24. Please do not knock our friends at LEH that have lost their jobs.
You do retail, which is a good profession. I have friends in retail — but here’s a question: how are you on boards if you do retail? ML, WC, MS, all the big houses block message boards AFAIK?
Also, just because this is finance, that doesn’t mean that RTFM doesn’t apply. Go buy books.
IMPORTANT: Due to new Securities Exchange Commission rules, short selling on certain financial securities are not permitted from September 19, 2008 through October 2, 2008. The complete list of stocks which are unavailable for shorting can be found here. Any previous existing open orders to short sell these securities have been cancelled.
Attention Options Customers: Due to the above new SEC regulation on short sales, certain options positions on these underlying securities expiring September 20, 2008 (long uncovered puts and short uncovered calls) that were entered into after September 18, 2008 may be subject to being closed by E*TRADE Securities at or before expiration. E*TRADE Securities may also take action to close the assigned/exercised underlying security in the event that the options are assigned or exercised. Please note that options positions entered into prior to September 19, 2008 are not subject to this action.
To avoid the above action, you may wish to close the above mentioned options positions prior to option expiration dates in the event that the long option holders exercise the options prior to expiration.
Again, please note that the above circumstances are a direct result of the above described SEC regulation on short sales.
If you have any questions or concerns, please contact us at 1-800-ETRADE1.
37 is buuuuuurn.
Retail Masters of the Universe just got torched.
@32…you play with the bull, you get the horns!
The republicans have failed. Vote obama 08! Change we need.
VAbroker@#32…
Don’t worry about these turds. I’m not even in the business, and I’ve been wailing on them for the past 6 months.
Punch them hard. They don’t mind it. Makes them take off their blinders. Unfortunately, they can’t see any better though.
The Guy from Delaware
we had a shitload of trades busted, bigass fucking headache. big fucking joke. good job government! you’re a bunch of fucktards. oh wah, you had 20 trades busted? happy friday!
Ahhhh, this is Barack Obama. I uhhhh, I of course, wouldn’t, uhhhh, I wouldn’t want any of you to think that ahhh, that I’m less than omniscient in all matters which are uhhhh, consequential in terms of uhhhh, the economy. I uhhh, of course I feel your pain, all of you, which is why ahhhh, I propose a massive re-regulation of ahhhhh, of the ahhh, . . . .financial markets, including the uhhh, the NASDAQ and the uhhh, New York Stock Exchange, uhhhhhhh, . . . . because we need change! We need Hope! We need to hope for uhhhh, for more change.
Let me get back to you. I uhhhh, I ah need to confer with my brain trust.
Then of course, ahhh, then of course we’ll propose some more study of the . . . . matter, and uhhh, propose some regulation, some legislation. Then uhhh, after some uhhh, . . . some prestidigitation, we’ll ahhhh, outlaw disintermediation, and ahhh, we’ll stick it to ahhh Inflation, and then we’ll uhhhh, we’ll be back to being, the uhhhhh, America we hope to change, and the uhhhh, America we can all believe in.
By the way, did you know I’m Black you silver-spoon, hook-nosed money-grubbers up there on Wall Street?
Vote for me, and I’ll absolve you of all racism.
Thank You. Vote for me or you’re a Racist.
Ahhhh, this is Barack Obama. I uhhhh, I of course, wouldn’t, uhhhh, I wouldn’t want any of you to think that ahhh, that I’m less than omniscient in all matters which are uhhhh, consequential in terms of uhhhh, the economy. I uhhh, of course I feel your pain, all of you, which is why ahhhh, I propose a massive re-regulation of ahhhhh, of the ahhh, . . . .financial markets, including the uhhh, the NASDAQ and the uhhh, New York Stock Exchange, uhhhhhhh, . . . . because we need change! We need Hope! We need to hope for uhhhh, for more change.
Let me get back to you. I uhhhh, I ah need to confer with my brain trust.
Then of course, ahhh, then of course we’ll propose some more study of the . . . . matter, and uhhh, propose some regulation, some legislation. Then uhhh, after some uhhh, . . . some prestidigitation, we’ll ahhhh, outlaw disintermediation, and ahhh, we’ll stick it to ahhh Inflation, and then we’ll uhhhh, we’ll be back to being, the uhhhhh, America we hope to change, and the uhhhh, America we can all, . . . . we can all, . . . uh, believe in.
By the way, did you know I’m Black you silver-spoon, hook-nosed money-grubbers up there on Wall Street?
Vote for me, and I’ll absolve you of all racism.
Thank You. Vote for me or you’re a Racist.
The Eshak Weldon wedding was lovely, just like the lady herself!
http://photos1.blogger.com/blogger/7016/3128/1600/freak_show_03.jpg
43/44. Too stupid, didn’t read.
I1i7zV Thanks for sharing, this is a fantastic post.Really thank you! Awesome.