GET READY!!!!!!! 5% rise or fall in a stock in 5 minutes, stock halts.

J

jackpearson

A $10 stock can't go to $10.50 in 5 minutes without halting.

A $10 stock can't go to $9.50 in 5 minutes without halting.


How is that going to effect your trading?


For me, horrendous.
 
You should add this link to your morning preparations. The limits change daily.
http://www.cmegroup.com/trading/equity-index/price-limit-guide.html

Why should you do this? Because the futures have a 7% threshold before the first halt is triggered in a down market. So while 100's of stocks get locked, and the ones who don't know what's happening cover at a ridiculously high locked price, the futs goes on! In a down market, this knowledge can make a huge difference in how you handle your locked holdings. Rule applies to Russell (ICE) as well. SP500 halts, Russell halts. But in an up market, you're stuck with LULD. I offer no help. Price limits in futures are Limit down only! Except in the overnight.

Prepare for wild opens and closes until October.

Thanks for posting the article.
 
Excerpt from the CNBC link above...

The rollout on Monday will include part of the S&P 500 and Russell 1000 and will be fully rolled out for both indices within a week or so. It will also include selected Exchange Traded Products (ETPs).

No protection in the open nor the close. One other point: the LULD's will initially only operate between 9:45 a.m. to 3:30 p.m.; there will be no LULD from 9:30-9:45 a.m. and 3:30-4:00 p.m.

A Phase II that begins in October will expand the time LULD's operate to the full trading day, from 9:30 a.m. to 4:00 p.m.
 
makes no sense...with basically NO volume in premarket and first 15 min of trading and HUGE spreads. right now damn spreads can be 10%. cause those dumb f** killed the liquidity long time ago.
and keep doing it. yesterday premarket volume on IWM was 40K shares before market open. 2-5 years ago it was 4M. two months ago it was 400K. now-pathetic 40K. premarket volume on liquid etf's been my favored and simplest gauge for a market activity. and activity is GONE

--NYSE Euronext and Nasdaq OMX Group Inc. (NDAQ) will hold off extending the program to the last 15 minutes of trading days, according to an equity regulatory alert on Nasdaq’s website.---

ok,i got that. now what? one can trade via ECN's,dark pools etc. what you gonna do or can do about it? NOTHING.
it would make sense,if (as i propose long time ago)-regulators force all of us to trade on FEW centralized exchanges, rather than having 10's of them all over the place. this is one place, where we actually need the regulation.
bottom line- imo will not work in current micro structure.
 
Quote from tiddlywinks:

Excerpt from the CNBC link above...

The rollout on Monday will include part of the S&P 500 and Russell 1000 and will be fully rolled out for both indices within a week or so. It will also include selected Exchange Traded Products (ETPs).

No protection in the open nor the close. One other point: the LULD's will initially only operate between 9:45 a.m. to 3:30 p.m.; there will be no LULD from 9:30-9:45 a.m. and 3:30-4:00 p.m.

A Phase II that begins in October will expand the time LULD's operate to the full trading day, from 9:30 a.m. to 4:00 p.m.
More...


Thanks
 
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