NYSE Eliminates Trading Curbs Dating Back to 1987

Discussion in 'Wall St. News' started by tyler19, Oct 29, 2007.

  1. tyler19



    Does this sound Fishy to anyone?

    Oct. 26 (Bloomberg) -- The New York Stock Exchange said it will no longer impose curbs on computer-program trading that were put in place after the crash of 1987, claiming they're no longer as effective in damping swings in prices.
    The exchange will stop prohibiting brokerages from entering some program trades when the NYSE Composite Index rises or falls more than 2 percent, according to a notice sent to member firms today. The so-called collars had been in effect since 1988 and were triggered 17 times this year, according to a filing with the Securities and Exchange Commission.
  2. Nothing fishy....

    Sounds like they are trying to increase the order flow going to the floor.
  3. how?, can you please explain further, thx
  4. I consider it great news. It will INCREASE VOLTILITY and thus profit potential wild swings in times of uncertainity. They removed the rules and thus wish to have a more volatile market. Just another way the big board has becomes less "regulated" just like the no uptick rule earlier this year. Starting to remind me of the OTC market more and more hahaha! Any how should make for some interesting moves on severe up and down days! Cheers!:)
  5. Doesn't it seem reckless to be removing an important safety switch especially in a market that is becoming increasingly volatile?