SEC Questions Trading Crusade as Market Makers Disappear

Discussion in 'Wall St. News' started by Banjo, Sep 13, 2010.

  1. Banjo


  2. Bob111


    erased :confused:
  3. The debate over how to keep U.S. stock prices from plunging in times of stress gained urgency after the May 6 crash that erased $862 billion in equity value over 20 minutes.

    There's an app for that. Called a do-over.:cool:

    Bust trades, so on and so forth.....
  4. as it says in the report.

    maximum liquidity when no one wants to do anything.

    when the market all wants to buy or sell at the same time - guess what.

    no liquidity as every algo bullshit company pulls its orders.
  5. Well, if Joe Blow is long and sells his stock which has dropped 100 points to Jim Blow, and it falls another 100 points, and Jim Blow sells it to John Blow, and it drops another 100 points, each has lost 100 points, no one has gained. The only one making money here is a short, or the one buying at the reversal (assuming a reversal).
  6. Specialists and Open Outcry Pit traders are probably right there with traditional travel agents, cursing the technology and market forces which squeezed their "costs" and livelihoods out of the game. LOL - I guess the skin flint brain trust didn't realize that order matching computers don't add liquidity any more than today's HF algo traders do.
  7. TGregg


    “Old specialist obligations” LMAO. So getting rid of the specialists allows the markets to freefall, huh? That's $@#*ing hilarious. Oh yeah, the specialists will dive right in and catch all them falling knives, they don't mind losing a fortune in a crashing market. Their bosses will understand.

    Just `cuz these greenhorns don't remember Black Monday, what makes them think nobody else does either?
  8. I too would like to see the return of the market gougers. I don't mind paying 1-2% per RT with 23% end of day crashes.