Circuit Breakers?

Discussion in 'Stocks' started by kidofstreet, May 10, 2010.

  1. Is this some type of stock market parlance? I'm guessing it's not an electrical circuit breaker, more of a server cluster/software that start blocking traffic/trades when triggers are met; am I correct?
     
  2. more like speed limits for orders. Yet another bad idea that will lead to many unintended consequences I'm sure.
     
  3. It stops trading after a certain drop.
    http://en.wikipedia.org/wiki/Trading_curb
     
  4. timcar

    timcar

    FROM REUTERS
    _______________________________________________________________________________
    The NYSE introduced a trading curb on its floor Thursday that forced most trading to all-electronic exchanges such as the Nasdaq Stock Market and NYSE Euronext's electronic Arca venue, which did not have similar curbs -- a lack of uniformity seen as having worsened the wider market's drop.
    Now, regulators and the industry appear to be eyeing something like NYSE's system as a template for the whole marketplace.
    The NYSE and Nasdaq, the two U.S. exchanges that list stocks, want to handle the reopening of markets following any future trading halts due to a circuit breaker, sources said.
    ________________________________________________________________________________________
    If “TRADING CURBS” are required on all ECN’s then the NYSE and NAZ will regain the power to stop trading and start it again.
    WOW !!!!!!!!!!
     
  5. Another option is to strip the ECNs of their dignity and consider the venues OTC. Off exchange unregulated trading with no NBBO or any other price, size, or clearing rules and regulations. Unrecognized unreported trades.
     
  6. GTS

    GTS

    http://lmgtfy.com/?q=market+circuit+breaker
     
  7. This is the exchanges trying to be proactive before the lawmakers do something really stupid.
     
  8. Lawmakers are afraid we will see another sharp sell off and they want to prevent it by having a handle on the market. The last thing they want is the stocks to go down when the unemployment is still bad, Fanie and Freddy still reporting losses and ... The possibility of a great depression is not null. SO they will do anything possible to prevent it.
     
  9. I just don't understand the physical mechanism. My BS was in CompSci, I understand networks and such. When the CNBC pundits talk circuit breakers...I get the impression they have no idea what they are talking about since a "circuit breaker" will do nothing to massage network traffic (which I'm assuming what trades are, IP or some other kind of network traffic).

    Any suggested reading on how these systems work would be most appreciated.
     
  10. timcar

    timcar

    HOLY SHIT

    HOLY SHIT

    HOLY SHIT

    Somehow the thread “Fatfigure did not cause the Trouble” is gone.
    That was a great thread where did it go.

    We as traders have to be able to talk about this or this website is unless.
     
    #10     May 11, 2010