Emergency Powers!!??!
From the NY Times’ Dealbook: “Federal market regulators are still unsure about the cause of the sharp stock market drop two weeks ago, and that worries Senator Jim Bunning.” Let me interrupt here –...
View ArticleSenator Bunning’s Office Responds
I received an email on Thursday from Senator Jim Bunning’s legislative director, William Henderson. Unfortunately, it was sent to my secondary account, and I didn’t notice it until this evening when I...
View ArticleIndividual Stock Circuit Breakers Need Tweaking
Several weeks ago the SEC implemented the new single stock circuit breakers which temporarily halt a stock if its trade price moves more than 10% over a 5 minute period. Astute observers have already...
View ArticleYou Cannot Force People To Make Markets
At the risk of beating a dead horse, I want to come back to an essential point that is necessary to remember in any discussion of market structure reform. This morning I praised Floyd Norris for an...
View ArticleThat Flash Crash Thing
note to readers: Kid Dynamite is on vacation. Through the powers of the Internet, he scheduled this post ahead of time, and will not be able to respond to comments until he returns. Yep, it was a...
View ArticleOh The Horror – Your Indices Are All Wrong!
I don’t dislike Joe Saluzzi and Sal Arnuk of Themis Trading – I just have a different perspective on market mechanics than they do. I’ve actually had some intelligent and civil private email...
View ArticleThe Idea of Banning Market Orders Goes Mainstream
I believe that I was one of the pioneering voices of the idea, which some may view as Draconian, of banning the “market” order type. Although I’m normally in favor of letting traders be as stupid as...
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Dear Knight: Thank You. Dear Themis: Relax
Dear Knight Capital ($KCG: no positions), I just want to thank you for the opportunity this morning. When your “technical issue” caused upwards of 148 stocks to experience price dislocations, it...
View ArticleDear NYSE: Canceling Trades Destroys The Integrity of The Market
Dear NYSE, So earlier I wrote a post about how today’s market action really wasn’t anything that should make any of us want to run around screaming that the sky is falling. In that post, I said that...
View ArticlePutting Together the Pieces of the Knight Capital Group Puzzle
Long story short, in Seinfeld style: Knight Capital Group ($KCG: no positions) had a huge error Monday morning, yadda yadda yadda, they lost $ 440MM and are scrambling to come up with capital to remedy...
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