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SEC unveils plan designed to protect the markets


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#1 Rogerdodger

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Posted 05 April 2011 - 06:57 PM

SEC unveils plan designed to protect the markets from volatile price swings following 'flash crash' - Reuters
http://bit.ly/eX1yXs

WASHINGTON (Reuters) - Securities regulators unveiled a long-awaited plan designed to protect the markets from volatile price swings following the May 6 "flash crash."

The so-called "limit up-limit down" proposal, announced by the Securities and Exchange Commission, would require trades in U.S.-listed stocks to be executed within a range tied to recent prices. If approved, it would replace existing single-stock circuit breakers that were implemented through a pilot program shortly after the flash crash to help combat wild price movements.

Edited by Rogerdodger, 05 April 2011 - 06:58 PM.


#2 CallMeIshmael

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Posted 05 April 2011 - 07:15 PM

SEC unveils plan designed to protect the markets from volatile price swings following 'flash crash' - Reuters
http://bit.ly/eX1yXs

WASHINGTON (Reuters) - Securities regulators unveiled a long-awaited plan designed to protect the markets from volatile price swings following the May 6 "flash crash."

The so-called "limit up-limit down" proposal, announced by the Securities and Exchange Commission, would require trades in U.S.-listed stocks to be executed within a range tied to recent prices. If approved, it would replace existing single-stock circuit breakers that were implemented through a pilot program shortly after the flash crash to help combat wild price movements.

There it is. They've outlawed market corrections.

#3 spielchekr

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Posted 05 April 2011 - 07:16 PM

whew! For a 100th of nanosecond there, I was worried that flash trading would not remain fully intact. Actually it was only a picosecond, but it sure FELT like 100th of a nanosecond.

Edited by spielchekr, 05 April 2011 - 07:19 PM.


#4 arbman

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Posted 05 April 2011 - 07:23 PM

Soon the stocks are going to be forbidden from going down, when a stock price goes down, the investors will be told to wait however long necessary to find the new investors to support the prices. There will be days that the stocks won't be traded at all and it will be normal, people will not be concerned or panic.

They will embrace the trading holidays, even if they last a few weeks to months. Eventually, the govt debt will be also replaced with a gigantic stock and all Treasury bonds will be retired. The govt stock will replace the money, you will be able to buy and sell an entire govt with its stock.

We will come in contact with the aliens in 2012, they will come to trade in our exchanges their own countries. NYSE will not be global, but universal. Soon, we will find ourselves capitalizing on the entire solar system. We will never have to work again, the aliens will share with us their loot from other solar systems. This will allow us to retire all world population in peace and live happy once again.

I know Roger, I am a true visionary...

whew! For a 100th of nanosecond there, I was worried that flash trading would not remain fully intact. Actually it was only a picosecond, but it sure FELT like 100th of a nanosecond.


Exactly, if they have to crash the stock market, they have to do so really fast!

Edited by arbman, 05 April 2011 - 07:25 PM.


#5 CallMeIshmael

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Posted 05 April 2011 - 09:14 PM

Soon the stocks are going to be forbidden from going down, when a stock price goes down, the investors will be told to wait however long necessary to find the new investors to support the prices. There will be days that the stocks won't be traded at all and it will be normal, people will not be concerned or panic.

They will embrace the trading holidays, even if they last a few weeks to months. Eventually, the govt debt will be also replaced with a gigantic stock and all Treasury bonds will be retired. The govt stock will replace the money, you will be able to buy and sell an entire govt with its stock.

We will come in contact with the aliens in 2012, they will come to trade in our exchanges their own countries. NYSE will not be global, but universal. Soon, we will find ourselves capitalizing on the entire solar system. We will never have to work again, the aliens will share with us their loot from other solar systems. This will allow us to retire all world population in peace and live happy once again.

It's a cook book!

#6 Rogerdodger

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Posted 05 April 2011 - 09:32 PM

I know Roger, I am a true visionary... My vision is my brain in a jar. It's almost pickled already! B) Here's my post from: Jun 8 2004, 11:16 PM "50 years from now we won't need to buy a computer. We will have a chip implanted in our head powered by bio electrical energy. It will be wireless and we can just think to each other rather than e-mail. We will have a separate program which will profitably trade stocks 24 hours a day without any action on our part. We won't have money as it will be electronic funds transfer directly into our brains. Drugs, alcohol and sex will be unnecessary as we will have implanted stimulators which will cause endorphins to be pumped directly into our bloodstream. Our bodies will be useless so we will just be brains in jars."

Edited by Rogerdodger, 05 April 2011 - 09:36 PM.


#7 Data

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Posted 05 April 2011 - 09:37 PM

For companies already covered by the circuit breakers adopted last year, trades wouldn’t be able to occur 5 percent higher or lower than the average price over the prior five minutes, the SEC said. For all other securities, the band would be set at 10 percent. Wider collars would apply for shares trading below $1. The thresholds would be doubled during in the minutes surrounding the open and close of U.S. exchanges.

If a stock price rises or falls to the threshold and trades are “unable to occur within the price band for more than 15 seconds,” a five-minute pause will be imposed, according to the SEC statement. The halt will give investors time to respond to “fundamental price moves” driven by news about companies, the SEC said.


http://www.bloomberg...volatility.html

#8 arbman

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Posted 05 April 2011 - 11:48 PM

You must be a perfectionist, Roger... Anyway, I think slowing down the trading instead of halting is still a better strategy, I suppose. After all, they are simply trying to maintain the order flow and protect from the deliberate overwhelming of the system...

#9 jack

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Posted 07 April 2011 - 12:20 AM

Why keep the thrill of lock limit for futures traders only :)