NASDAQ's disgraceful act involving FB IPO

Discussion in 'Trading' started by forsalenyc, May 18, 2012.

  1. You are right about the hft :

    "Thanks to the work of Telis Demos in an article ‘Raindrops’ raise questions after Facebook IPO we now know the cause of the opening delay was excessive quote cancellations. From the article:

    And it was one quote cancellation sneaking into a five-millisecond window that caused about 20 painful minutes, watched live by the world on CNBC television, of the delay to the opening of Facebook’s initial public offering on Nasdaq’s US market.
    ..
    In brief, the problem was that the system took two extra milliseconds to calculate the opening price. Because of a decision before to allow continuous order placement during IPOs, cancellations kept “fitting in between the raindrops”, in the words of Bob Greifeld, Nasdaq’s chief executive, in the five milliseconds it was taking to determine a price.
    Only High Frequency Traders (HFTs) can cancel quotes at that rate. And ironic enough, it was mostly HFTs that benefited later when Nasdaq quotes stopped coming from the Securties Information Processor (SIP) which transmits quotes for everyone who doesn't get the premium direct feeds. The nearly 2 hour outage, from 11:54 ro 13:50 can be seen in Charts 9 and 10 below. Those who are co-located and get the direct feeds, namely HFTs, didn't experience this problem, as trades continued to come from Nasdaq."

    http://www.nanex.net/aqck/3099.html
     
    #21     May 21, 2012
  2. trom

    trom

  3. the exchanges and hft have been sodomizing you for decades.

    only now you wake up?

    demand fairness , get it, or dont trade if you dont like it.
     
    #23     May 21, 2012
  4. lindq

    lindq


    Sorry if you took a hit. But...when you stick your hand into the fire and get burnt, it's kinda hard to blame somebody else.

    Retail traders should never be near an IPO in the first few minutes of trading, much less in an issue like FP.
     
    #24     May 21, 2012
  5. MAYBE , JUST MAYBE , they should have listed on the NYSE ...
    at least we would have a culpable market maker to address
    ... but I don't think something like this would occur within those
    walls
     
    #25     May 21, 2012
  6. Well finally this indicates CANCELS or CANCEL AND REPLACE orders must cost something. Cancel orders swamping the queue ? This is ridiculous.
     
    #26     May 21, 2012
  7. That is a facade . It had nothing to do with
    CANCEL / CANCEL - REPLACE orders , they
    just didn't want to hurt little Zuck's ego by
    announcing they couldn't decide what to
    do with all the SELL orders . Underwriter
    did some job heh? Pricing IPO lower would
    have solved all this , but I am sure there was
    something tied to market cap that prompted
    the $38 price .
     
    #27     May 21, 2012
  8. I rarely post here anymore, and I thought I'd use this as an excuse to post lol..... you're right though, I can't be blaming anyone. Shit happens all the time in the trading world, and I should've done smaller size after nasdaq announced problems pre-open. (don't know if it would've cancelled)

    Not particularly angry at myself nor nasdaq anymore..... I've been in this business long enough to know how pointless it is to blame others....... but you still can call something dirty if it indeed was dirty....??????
     
    #28     May 21, 2012
  9. lindq

    lindq

    As frustrating as your situation was, imagine being in the position of funds and brokers that were tossed thousands of shares at the open on Friday, and were unable to verify their fills while the stocked tanked. Yikes! Most were probably filled about 42, then got wacked big time.

    I was reminded of the old saying, "Be careful what you ask for because you might get it."
     
    #29     May 21, 2012
  10. nesyo03

    nesyo03

    Being an individual trader, you weren't forced to trade this stock. I had no issues on buying just above $38 as it stalled there at 11:50-11:55 and riding it to $41. Learn how to trade better and you wont need to blame Nasdaq. It's hilarious to hear about people crying about how this stock has screwed them over. Made money both day's its been open. Best part is that I don't even have a Facebook account... Can't wait to read the responses from all the losers with an excess amount of posts on this site!
     
    #30     May 21, 2012