SEC sets unified stock-halt rule for drops of 10%

[Specterx]

Quote from Angrycat:

The order is a blanket order as far as I can tell.

As posted above in this thread:

"Under the plan, trading of any Standard & Poor's 500 stock that rises or falls 10% or more within a five-minute span would be halted for five minutes. These rules, known as "circuit breakers," would be applied if the price swing occurs between 9:45 a.m. and 3:35 p.m. Eastern time. That's almost the entire trading day."

I don't like the government, etc. either but people need to get a grip.

 

[TraderZero]

Quote from Angrycat:

Yes, I trade for a living at a trading company. I'm not a retail trader.

What you don't seem to grasp is that how often it happens is not that relevant. And...um...in illiquid securities it happens much more frequently and usually because of a large order (relative to normal volume). As usual, the SEC has issued a blanket order on all stocks without regard for normal volume, news stories or any other parameters.

S&P500...Yep, lots of illiquid stocks are part of that index.

Try actually reading the report before adding your worthless opinion (and I say its worthless because based on your comment, you clearly haven't read the press release from the S&P as it CLEARLY states this applies only to the S&P500).

It's not, NOT, a blanket order on ALL STOCKS as you're trying to imply.

As with all changes in the market, good traders will adapt and overcome, bad traders will get blown out and go into another line of work.

 

[Angrycat]

Quote from Specterx:

As posted above in this thread:

"Under the plan, trading of any Standard & Poor's 500 stock that rises or falls 10% or more within a five-minute span would be halted for five minutes. These rules, known as "circuit breakers," would be applied if the price swing occurs between 9:45 a.m. and 3:35 p.m. Eastern time. That's almost the entire trading day."

I don't like the government, etc. either but people need to get a grip.

I obviously missed the bit you hilighted.

So, this doesn't really do very much except impose more costs on the exchanges. Typical.

 

[krazykarl]

Quote from Angrycat:

I obviously missed the bit you hilighted.

So, this doesn't really do very much except impose more costs on the exchanges. Typical.

The costs of a few lines of code are nothing compared to the mess they had to clean up the other week. If anything this move will save them some money.

Can you find something else about this non-issue to bitch about?

 

[stock777]

casino being shut, one table at a time.

soon you guys will have to find real employment, and most of the jobs you're qualified for are taken by illegals

Si, You were daytrader? Here, now you busboy!

 

[Angrycat]

Quote from krazykarl:

The costs of a few lines of code are nothing compared to the mess they had to clean up the other week. If anything this move will save them some money.

Can you find something else about this non-issue to bitch about?

If it's such a non-issue to you, why do you devote the time to post, moron?

 

[psytrade]

This is an extremely naive policy, if it goes through as the media portrays it...

1) STDEV of intraday moves is not accounted for. Its one thing if this is DNDN trading on a healthcare meeting event, or MSFT trading at CEBIT, you can get entirely different % moves, though MSFT going down 5% on one day is a huge negative for the dollar and cent Market, wheras DNDN might only effect a small portion of those consciously holding a risky stock.

2) Regulation encourages complacency. Complacency encourages leverage. This noted, there is nothing stopping the Market from working around this (own its own) -

i.e - Market goes down & is in freeze mode while Joe Hedgie buys 100,000 Futures Contracts to hedge while Joe Blow is coming or going to work. Another victory for Wall Street.

3) There is nothing stopping the Market from adapting itself on its own around this provision. Propagation of risk events already occur as moves in the underlying are digested almost instantaneously today, and the risk events propagate to other asset classes, other securities, etc... this is what the Market DOES... if it didn't do it, we would just mail each other checks and not trade at all.

It's funny that pseudo-educated politicians globally want to cannibalize a financial process that generated all this synthetic wealth in the first place.... a process that likely got them elected!

 

[LEAPup]

Quote from Angrycat:

The idiocy that happened on May 6th is a direct result of the lack of liquidity providers because the SEC has been screwing with the market for two years (worse than usual) and driving market makers out of business. Tens of thousands have left the business. Some have left not because they weren't profitable but because they just didn't want to deal with the SEC's bullshit anymore. So, now HFT shops provide 50-70% of the liquidity on any given day and a few of them turned off their boxes. No liquidity, no bids. Simple, really.

What the SEC should do instead of these stupid bands is stop torturing the capital markets so that people aren't afraid to provide liquidity. Have stub quotes ever been hit out before? Not that I can remember. So, somebody must have been bidding before, right? It's the bids that prevent the May 6th's. The bands don't produce bids - just more volatility.

So, yeah....the status quo sucks, but it's a new creation of the SEC and this "fix" doesn't fix the fundamental problem the SEC has caused which led to May 6th.

AGREED!!!!!!!!!! I'm a S7 Broker- I have FINRA to deal with. I am a Registered Investment Advisor- I have the SEC to deal with. After speaking with a very successful RIA, and a 20 year Compliance Principal, we all came to the same conclusion: WE WANT OUT!!!!!!!!!!!!!!!!!!

Yeah I know, Financial Advisors suck. We're all used car sales guys, etc., Lol! Well, many are. Many are not. Some of the brokers/advisors I used to know should be in jail, not free, but there are the good ones out here who actually help people reach financial goals. I truly care about my Clients, got the CFP designation, don't sell any snake oil garbage, etc.,

Seeing the idiot who td ameritrade makes out to be the "typical" Advisor is kind of sad. Seeing people who have NO business trading their retirement account after going to td ameritrade, and talking to a new rookie is sad. What's REALLY sad is the max exodus of guys like me, the veteran Compliance Principal, and the other RIA I mentioned. NOT because of stupid commercials, etc., But because of the TEE TOTAL ignorance we are seeing with the regulators.

I will e-mail this link to the Compliance Principal, and paste what he writes. He's a common sense guy who I NEVER, EVER thought would actually "come clean" with his wanting out of the retail side so badly. After hearing what he told me of recent FINRA, and SEC cases, what they did, etc., I'm really wondering if these regulators take breaks to draw with crayons, and have cookies and milk.

Common sense isn't almost uncommon; it's no where to be found at the SEC and FINRA.

Here I am learning to trade my own account, thinking I'm about to rid myself of the idiot regulators, and I'm getting garbage like "the CFTC is about to take Fx leverage down to 10:1," and I'm trading Fx.

This really is the "United Slaves of America" as someone posted here at ET recently. I am a prior Marine Officer who fought for this ONCE great Country, and have earned to right this opinion. Only WE can change this Country and get it back. The question is how?

Is the SEC trying to dry up market liquidity with their newest bullshit rules? Wasn't low liquidity a part of the problem on the 6th? Are there ANY normal brain cells being USED by the regulators?

Just absolutely stunned at the ignorance that is displayed every day in the "United Slaves of America."

 

[krazykarl]

Quote from Angrycat:

If it's such a non-issue to you, why do you devote the time to post, moron?

Because I'm tired of people half-reading shit then spouting off about how bad a rule/measure/action is. People that have no business commenting on things feel compelled to share their opinion on something, only to realize that what they're pissed about isn't even the case!

 

[KINGOFSHORTS]

They should add a 10% halt for price jumps as well. To prevent noobs paying too much.