WTF "SEC approves plan to curb volatility in stocks"

Z

zanek

Seriously people, this is getting really crazy.

And I quote:


"The Securities and Exchange Commission said on Friday that beginning in February, individual U.S.-listed stocks will be prevented from trading outside a range based on recent prices."

Isnt this supposed to be a free market ? Stocks can only trade where they want them to be now. Wow, I'm in my 30's but this seems like the dawn of the apocalypse.

For more liquid securities in the S&P 500 Index, Russell 1000 Index, and certain exchange-traded products, the band will be 5 percent above and below the average price of the security over the preceding five-minute period. For other listed securities the level will be 10 percent.

So stocks can only MOVE UP OR DOWN 5-10% . WOW , WTF

Come on my fellow americans, we can do better than this.

http://www.cnbc.com/id/47653714

-- Zanek
 
Quote from zanek:

Seriously people, this is getting really crazy.

And I quote:


"The Securities and Exchange Commission said on Friday that beginning in February, individual U.S.-listed stocks will be prevented from trading outside a range based on recent prices."

Isnt this supposed to be a free market ? Stocks can only trade where they want them to be now. Wow, I'm in my 30's but this seems like the dawn of the apocalypse.

For more liquid securities in the S&P 500 Index, Russell 1000 Index, and certain exchange-traded products, the band will be 5 percent above and below the average price of the security over the preceding five-minute period. For other listed securities the level will be 10 percent.

So stocks can only MOVE UP OR DOWN 5-10% . WOW , WTF

Come on my fellow americans, we can do better than this.

http://www.cnbc.com/id/47653714

-- Zanek
More...

I'm sure this will all end well.:D
 
The so-called "limit up-limit down" initiative would pause trading for five minutes for securities if attempted trades remain outside the price band for more than 15 seconds. During that timeout period, traders could assess whether the move was based on fundamentals
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HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAHAHAHAHAHAHAHAHAHAHAH!!!!!!!!!!!!!!!!!!!!!!!


Americas as screwed as Europe and just about as stupid. ~ Edit.............. Not referring to the general population of course, rather the trend we seem to be well on the way down.
 
cause they know that #1-nothing was done since 'flash crash'
#2-there is no REAL liquidity on stocks for last few years. it's all fake
#3 all those bots,who suppose to provide 'fair and orderly market' ain't doing s**t. and all that posted 'liquidity' will disappear,when you trying to hit it.
 
"PILOT PROGRAM: The Securities and Exchange Commission approved the changes, which were requested by the U.S. stock exchanges. They will take effect in a one-year pilot program, to start by Feb. 4."


So, the SEC approved the changes....we all know they're idiots, so no surprise there. However, I'm a bit surprised that the changes were "really" requested by the U.S. stock exchanges. All I see this doing is to cause stepping away and less liquidity when there should be a big momentum move.

Such as big news item comes out mid-day....market makers know it should fly significantly higher than 5%.....they offer 100 shares 5% above the 5-minute range and step away (no liquidity)....then 1 minute later another 5% higher, etc. (Or something like this)

I don't see this helping anyone....just hurting the markets which shouldn't be messed with.
 
Perhaps they should just reinstate the "uptick" rule which was removed in 2007 (coincidentally with the top of the market).

At least with the uptick, the bots can't just slam the bids to knock it down, and have to match their orders with the ask.

Instead of having the uptick for stocks that gap down 10% (the new rule in effect now), just bring it back for all stocks.
 
How about you let the market be free and if a company does what its supposed to do and makes money...it goes up.... and if its a piece of crap...it goes down.

naked shorting never bothered me, if it was allowed for everyone, but when only a handful of people could get short the Crap companies ...that was never fair


At the end of the day, if you perform in running your company, your stock will follow suit and if not, it will go down...

The market is always right and no legislation or rules will stop the eventual down fall of a stock, what ever the reason it goes down. After they did TARP and didn't allow financials to be shorted...they went up for a day or two...and then followed up by falling almost everyday for the next 5 months.... the market will always go where it has to go..... just let it be free and stop trying to manipulate it
 
Quote from ScalperJoe:

Perhaps they should just reinstate the "uptick" rule which was removed in 2007 (coincidentally with the top of the market).

At least with the uptick, the bots can't just slam the bids to knock it down, and have to match their orders with the ask.

Instead of having the uptick for stocks that gap down 10% (the new rule in effect now), just bring it back for all stocks.
More...

That would require the SEC to admit they were wrong, so you know that won't happen.
 
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