Executives from the nation’s various trading venues convened are holding meetings in Washington today to devise new rules that aim to prevent the dramatic 1,000-point drop in the Dow that shocked the markets last week.
Early reports from the meeting indicate that exchanges, including NYSE Euronext and Nasdaq, are planning to institute uniform circuit breaker rules that slow trading during volatile market swings. The rules are meant to apply across most major trading systems, but it’s unclear how regulators can impose the rules on banks’ internal order flow.Regulators have said that last week’s sudden drop in the markets was most likely caused by circuit breakers that were triggered on the NYSE, which drove trades onto other markets where there is less liquidity.
From the Associated Press:
“With the huge changes in the market we need again to look at market structure,” said Rick Ketchum, CEO of the Financial Industry Regulatory Authority, a private self-regulatory group that oversees the Nasdaq.
Ketchum said firms with direct market access need safety shut-off valves so they don’t “continuously feed in orders” after market drops and should consider the risk of rapid liquidity problems in fast-moving markets.
“There need to be shock absorbers in the market,” Ketchum said. “We can’t be in this position of redesigning what happens in trades and making decisions in what trades should be broken with respect to markets that go close to zero. That isn’t an acceptable place.”
Emergency shut-offs are for noobs
-BP Oil rig manager
chirp, chirp
1- ftw
Jesus molested me in the back of a van.
SHUT DOWN ON DOWN DAYS DOW ONLY ALLOWED TO GO UP
So the nubs at the SEC and FINRA are finally waking up from thier decade long sleep…..
@5 Nice.
this is collusion, so if you bob barry’s knob by being in favor or financial reform of course you can get away with it
who’s bob barry?
@9 if you suck obama’s dick you can do whatever you want
3 20-handle drops = much better than 60-handles in 10 min.
~Relieved Trader with a fat, slow finger
I think I know how the speed bumps are gonna work:
NYSE > Error
You are trading stocks too quickly. Slow down.
- WordPress IT guy
@12 LOLZ
this was a lacklustre effort
10- nice sense of humor you got there. Dad? Is that you?
Nice. You just know that this is going to hit some unprepared quant fund in some weird manner, leading to even more vol and even more convoluted “speed bumps”. Hoorah for knee jerk responses.
@12 FTW, we should get DB IT to work on a solution.
#9 is definitely not the joke briefer
I’ve got speedbumps Greg, can you milk me?
-Road by a schoolzone
Speed bumps = absolutely stupid
Learn how to trade. 75% of busted trades ETFs probably stop orders put in by pikers. The people who bought shares at a penny deserve to keep it.
Market orders are for suckers.
- LLoyd
ok i wont trade so fast next time, ill just put in bigger slower orders.
The dyslexic guy who cant see the difference between B and M