the news wasnt properly posted at first. It gave the impression that it was 10% drop across all time frames. Blame the OP
No it wasn't - the market recovered in a few minutes. The idiocy was the result of market orders going off in a short period of time, and people being unable to react quickly enough to the absurdly low prices in some stocks, along with fear of trade busts which put off bidders. Do you really think there was a lack of liquidity at 0.01 per share for solid stocks, or a lack of willing buyers on market-tracking ETFs which were 40-50% below their arbitrage fair value? I would have happily gone 100% long in those 0.01 stocks at far higher prices if I knew the trades would stand. I avoided stocks because I knew there would be capricious trade busts and I had no idea whether it would be down 20% or down 60% as it turned out to be. So, I just stuck to the futures which are a fair market unlike stocks, and many others did the same. That is why there was no liquidity, it has nothing to do with HFT shops which in most cases aren't true paper anyway.
If you weren't such a noob yourself you would know that they intend to halt for ALL moves of 10% in 5 minutes whether up or down. Read, you ignorant ass, R-E-A-D!
Unlike you, I'm one of those liquidity providers you depend on, so I have much more business spouting off about this crap than a guy like you who sits around with his laptop, churning his portfolio all day. As a person with a job, I read threads and comment between actual productive activity. I also got conflicting information from the exchange. Thus, the mistake. I'm so sorry if you're so tired all the time, Krazy (fitting, I must say). Obviously, I was posting specifically to annoy you and this non-issue seems to be a giant issue for you. For the record, I'm still pissed because the SEC isn't actually solving any problems but creating new ones. And the reason I'm pissed is because everything the SEC has done over the past 2 years has made the market more fragile, more volatile and more rigged in favour of the Government Sachs of the world and against everyone else. This is just another little thing on the road to making the markets just another opaque scam.
Ghost, You don't have to be a broker dealer (which all MM's are) to provide liquidity. Any retail guy or hedge fund can post bids and offers. Market makers are just obligated to always make a two sided market. You're absolutely right that nobody wanted to provide bids. The question is - why is it that suddenly we have this problem? In part, it's for the same reason that so many MM's have left the business. Shorting is a key part of hedging. The new 204T rules - which were hastily put together and not thought out, probably so the SEC guys could get back to downloading porn quicker - are so onerous that you can't really provide a bid because you can't hedge your long position. That's only part of the problem, but it's bad for the market. If MM's have trouble hedging, the rules are worse for non-MM's. If you can't hedge, you don't bid. That's one big reason nobody was willing to bid.
I think you're full of BS. For starters 204T exempts firms who provide actual MM activity so your theory makes no sense whatsoever. Ghosts does though and like him I stayed away as did others I trade with for the same reasons-- obviously erroneous bids lead to busted trades and busted trades almost always result in me getting f*cked. Secondly, anyone with 1000 posts, especially in less then 2 years, is hard to take seriously.
You don't take me seriously? I'm crushed. You clearly have no clue about reg sho rules because, as a retail guy, your broker buys in your 100 shares and you're done. MM's are absolutely subject to 204T - they get three more days to buy in the shares, but they still have to buy them in. Worse, even if you buy back as many shares as listed on the 204T notice the day before, it doesn't count. You have three days to buy in the number of shares on the notice. It sets up this scenario: Short 10K shares on day one Buy back 10K shares on day two Short 10K shares on day three Get 204T notice to buy in 10K shares on day four. The notice is generated from a fail associated with the trades in day 1, but you still have to buy in because you're short the day you get the notice. Capice? No, probably not. I really don't give two shits why you retail guys weren't out there bidding. You're irrelevant to the market.
That's it - I call bullshit. You just sound like a piker. There is no way you trade for a living or if you did at one point have long since blown-up. The fact you missed something as blatant about this sec rule as the 5-min condition means that you don't pay attention. If you can't digest a simple rule from the sec there is no way you can catch the nuances of the markets.
Each time you post you expose yourself more and more as a piker wanabe. Anyone who cares to know whether or not your full of shit can simply google "market makers and 204T" and read the many pdf's from various MM legal depts including the CBOE that come up. Btw it's covered under rule 204a. Seems you're not very good at getting current info there son. Are you sure you work for a market maker and not a clearing firm? Perhaps that news hasn't gotten to you yet either?
*sigh* You are beyond clueless. I can't hope to unravel the confusion here. My colleagues were right. Talking to you guys is like rolling in filth and, as such, it's a total waste of time and devalues me. No wonder all of them simply laugh at you but refuse to take the time to talk to you. For engaging you morons (those of you who are and In include you and Krazy in this), I am a total idiot. Good luck churning your $2,000 portfolio from a laptop in your parents' basement, sparky. The subject of the thread is done and what some imbecile on the internet thinks of me is irrelevant, so I'm unsubscribing from this thread. Cheers!