From IB: Wed Aug 1 14:24:37 2012 EST We have been notified by the exchanges of potentially irregular trading activities for orders involving multiple securities and exchanges taking place between approximately 09:30 and 10:15 EST today. This activity is currently under exchange review and, as is standard practice, may result in trade cancellations and/or adjustments. We will provide further notification regarding any such exchange decisions to impacted accounts as received.
KCG breaking below 7.60. One would think that KCG would rise if the trades are busted. So in this situation, I hope the market is right.
Busted Trades are allowed under "clearly erroneous rules." For its part, the New York Stock Exchange said separately that it was reviewing trades on 148 stocks for possible cancellation under its clearly erroneous rules. Rogue algo trading is, perhaps, clearly erroneous. You stock traders should get ready for some busted trades..............
The NYSE and NYSE MKT have determined to cancel all trades in the following six symbols associated with this morning's CEE for multiple securities. Trades executed 30% or more above or below the NYSE/NYSE MKT opening price today between 09:30:00 a.m. and 10:15:00 a.m. ET will be busted. This situation is still under review by all relevant regulatory authorities. Symbols: WZE at or above $4.68 CO at or above $3.22 UTG RT at or below $0.0497 EJ at or below $3.36 ARC at or above $5.71 KWK at or above $5.91
I'm feeling a little more confident that trades (other than the six symbols listed above) won't be busted. Especially after reading this PDF document from the NYSE that describes the "Clearly Erroneous Execution (CEE)" rules and procedures http://usequities.nyx.com/sites/corporate.nyx.com/files/cee_policies_email_submission_guidelines.pdf
http://markets.nyx.com/nyse/trader-updates/view/11183 Update: CEE Review Determination for multiple symbols 15:11 ET 01 Aug 2012 Market: NYSE, NYSE Amex Category: Market Operations Update The NYSE and NYSE MKT encourage all member firms to keep their Common Customer Gateway (CCG) lines up and available after 4 p.m. ET today as some of the trade cancellations referenced in the prior message may not flow back until after 4 p.m. ET. In addition, all associated tape prints will be removed from the Consolidated Tape after 4 p.m. ET. CEE Review Determination for multiple symbols 14:57 ET 01 Aug 2012 The NYSE and NYSE MKT have determined to cancel all trades in the following six symbols associated with this morning's CEE for multiple securities. Trades executed 30% or more above or below the NYSE/NYSE MKT opening price today between 09:30:00 a.m. and 10:15:00 a.m. ET will be busted. This situation is still under review by all relevant regulatory authorities. Symbols: WZE at or above $4.68 CO at or above $3.22 UTG RT at or below $0.0497 EJ at or below $3.36 ARC at or above $5.71 KWK at or above $5.91
http://markets.nyx.com/nyse/trader-updates/view/11183 Update: CEE Review Determination for multiple symbols 15:54 ET 01 Aug 2012 Market: NYSE, NYSE Amex Category: Market Operations Update The NYSE and NYSE MKT in association with all relevant regulatory authorities have concluded the review of this morning's CEE filing. The six symbols listed below will be the only symbols with cancelled trades; no additional symbols will be considered for review. This decision is not subject to appeal. Symbols: WZE at or above $4.68 CO at or above $3.22 UTG RT at or below $0.0497 EJ at or below $3.36 ARC at or above $5.71 KWK at or above $5.91