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 :email@example.com]
Sent: Friday, September 19, 2008 1:05 PM
Subject: Multiple Stock Ruling Additional Ruling
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.