I used to argue for Globex adjustments instead of busts too. But I was missing a key part of the puzzle. The adjustment argument ignores a VERY important fact. Many, many of these sales in the bustable range were sell STOPS. You can't readjust a stop fill to a price range that wouldn't have set off the stop to begin with. In other words. Stock X is trading at $14. It starts to plunge. An $8 sell stop is then filled at 2 cents. If you "readjust" the days low to $9 then what happens to all of the sell stops below 9? Are you going to tell an investor, "your stop was below the trading range but we triggered it anyways. Not to worry we filled you better but you lost your position and the market is now higher". No can do. Illegal and illogical.
They also quickly hang white collar criminals. But if we did that, Wall Street would be a ghost town...
Then he shouldn't sell on an exchange that has rules that will bust the trade. The seller should then drive over to the buyer's house/office and do the transaction there.
This is why the exchanges have rules, like when material news is released trading in a stock can be halted during the release. The exchanges have done exactly what their rules say they should do. The only people I see complaining are the ones who are inexperienced and don't know all the rules they've been playing by.
It sounds like the guys with a whole bunch of money, the big players and market makers and HFT shops, did exactly the right thing. They knew that if the market goes down too much, stop trading, stop providing liquidity, because having trades busted becomes a possible unknown. We, as little guys, could do well to learn from them. Every busted trade is going to help one party (the trader who sold too low) and hurt the other party (the trader who got a great deal). They will never tell us the ratio of people helped vs. people hurt in terms of net worth. It will be extremely lopsided towards the little guy getting screwed.
clearly these rules are unfair to most market participants, once upon the time, slavery is a law of the land, people like you with similar mindset, should just keep telling to black people, they should have knew the rules. ha ha.
ha, I wish I can do naked HF trading as GS. they can pocket all the profits from last print price upon till 59.9%. ever thinking about that?Anyway, I am against bust trades in principle, they should bust all trades in question, and leave trader at even ground. Good Luck to OP.
as pointed out earlier, they can't make the trader flat without busting someone else's trade that occurred at a reasonable price....it goes on and on....sets in motion a whole string of busted trades.