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camarodan64 (98.62)

SHOCKING!!!news NYSE removes downside trading curbs

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October 01, 2010 – Comments (3) | RELATED TICKERS: PNG

March 2007
http://rds.yahoo.com/_ylt=A0oG7l8yG6ZMK5...**http%3a//www.reuters.com/article/idUSN01370267200...

 

Reuters) - The New York Stock Exchange said on Thursday it removed downside trading curbs as U.S. stocks pared early losses.

The curbs were instituted as stocks plummeted after the opening bell. The New York Stock Exchange Composite Index .NYA, which is used to determine when to begin trading curbs, was last down 98.33 points, or 1 percent, at 9026.21. It was down more than 2 percent earlier in the day.

 this was in March 2007, just before the start of the 2007 stock market crash, these trading curbs were made so that if the dow drop the trading curbs would kick in, so the real reason the "FLASH CRASH" happened because the "trading curbs" were removed in 2007 by the NYSE
they cited that the "trading curbs" were not needed any longer, guess they were wrong.

 This opens up the question  for the blog- What was the real reasoning for the removal of the trading curbs in March 2007

3 Comments – Post Your Own

#1) On October 01, 2010 at 2:22 PM, davejh23 (< 20) wrote:

"What was the real reasoning for the removal of the trading curbs in March 2007?" 

Why should there be any need for trading curbs in the first place?

"...these trading curbs were made so that if the dow drop the trading curbs would kick in..."

If the Dow drops, there has to be a reason for the drop, correct?  Is the market so broken that it doesn't serve it's purpose anymore?...that's they only reason I can see that would ever require the use of trading curbs, etc... 

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#2) On October 01, 2010 at 10:30 PM, Valyooo (99.53) wrote:

If. The market crashes, the shorts make money and longs lose money. If market takes off shorts lose longs win. Zero sum, I don't get why it matters

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#3) On October 01, 2010 at 10:41 PM, RLAprof (21.80) wrote:

Evidently you don't understand how HFT can manipulate the market in microseconds by cramming the system with ghost trades that are never intended to be fulfilled and can be pulled before they are. That's likley what caused the flash crash, no matter what the SEC says in their report. They haven't figured out how to control them, or have simply chosen to turn their heads so that banks can replenish their reserves without calling in the Fed.

 

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