WTF "SEC approves plan to curb volatility in stocks"

its not supposed to make sense. Its suppose to appease the big $ and big politics.

Are they gonna halt options @ the same time? how about etf's? how about foreign markets?

This rule is bordering on the absurd.

The only good that will come of this, is when it all blows up in their face. And you know its only a matter of time..

 

If you felt this way, why didn't you send in a comment during the public comment period?

There's other changes coming too.

Persuasive comments do cause change in proposals.

www.sec.gov is where you should be looking.

 

Your assuming I didn't.

 

Only if nobody trades it. One cross at either limit, and the band moves down 5%/10%.

I don't see anything in this that prevents strong, deep intraday movements in either direction.

 

I was asking myself this same question, but I think some portfolio managers have very strong understandings of the price mechanics in stocks. If their execution desk is efficient in responding to their valuation models, I can see them reacting within 5 minutes.

 

Bingo.

 

This thread is just another example of why the USA needs a new Constitution.
Otherwise, this kind of shit will never end.
The bureaucrats need to get their worthless overpaid asses out of the way.

 

"...but if the freeze period is only a few minutes...". It might not freeze. The bid/ask might be capped with MM still actively trading the spread. When it's uncapped price starts to move again. If it works that way scalpers might be out of the game. If buying and holding for the trend, there might not be much of a difference than before.

 

If that's true, I don't think retail guys would necessarily be disadvantaged with regards to bots owning the queue. Reserving order queue position at 5% bands from the open to the close on far-out levels is not difficult. The only advantage I could see big firms getting is that maybe the buying power of the little guy would get exhausted sooner (against some firm's internal risk system) trying to park orders on all the best symbols for little return on some 95% of trading days.

 

I'm not sure parking orders is going to be all that desirable. You park 10k (or etc) limit order @ -5%, the stock drops, you get hit for one lot, the band immediately resets to -5% from where your order is sitting and bam! your order remnant is providing liquidity on a stock that's ripping right past you.