UK Stockmarket 2009 and beyond

sabretoothtigger

Nasdaq to Cancel All Trades of Stocks Moving More Than 60% in Market Swing

http://www.bloomberg.com/apps/news?pid=20601087&sid=ai9CehsZxjqA&pos=1



So the people stopped out briefly will find they still own the stock I guess. I cant get the page to actually load properly so heres the headlines

3. For me to enter a sell order for a retail brokerage client of 500 shares of Microsoft ($MSFT), I need to go through 3 screens of verification and order confirmation. How is it possible that someone with the clearance to sell 16 billion shares of the S&P Spider could even have a typo? If I have 3 screens to confirm a trade, how much order verification does he have?

http://www.thereformedbroker.com/2010/05/06/there-had-to-be-a-second-trader-on-the-grassy-knoll-perhaps/



http://www.reuters.com/article/idUSTRE6455ZG20100506?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reuters/businessNews+

tradetime

turbobob wrote: »

I watched the earlier madness on CNBC but had to go out. Did they suspend trading at all? I thought there was a "circuit breaker" where trading was suspended if moves over a certain percentage happened in one go?

EDIT just to add CNBC commented something about the Dow being down 24% at one point, and they thought it was some kind of system error?

Circuit breakers or "trading curbs" are not active after 14:30 EST.
Maximum drop in the DOW that I could see was 998 points I think at one point.

3. For me to enter a sell order for a retail brokerage client of 500 shares of Microsoft ($MSFT), I need to go through 3 screens of verification and order confirmation. How is it possible that someone with the clearance to sell 16 billion shares of the S&P Spider could even have a typo? If I have 3 screens to confirm a trade, how much order verification does he have?

Don't really understand that, sounds like nonsense to me. I have limits set on my platform that govern maximum trade size entries, but there are no confirmation screens other than confirmation that the order was placed, and it's status, open, filled, partial fill etc, but they are information only. Not that it's not possible to set a platform up with actionable confirmation, but no-one for whom order execution speed is important will do this.

I am dubious of the fat finger trade though, I think it was an unfortunate combination of panic selling, a series of quote pricing errors (some of which I could see), and some big program activity, which is consistent with the speed of the trades.

This is an Oil services ETF I was actually watching at the time. normal price around $27 but at one stage there were Bid / Ask @ 0.17 / 0.18




....and one they were talking about on Bloomberg, seems there were many others.

tonygee_3

Good morning gents,
There is plenty of discussion,possibly rogue trader trying to deliberately unsettle markets.Also read NASDAQ cancel trades over 60%,bit of a bummer for you,trade,youll have to give back all those millions;)
It is absurd if 'mistake' and unlikely with billions of global trades daily it would happen at least daily?
Hung Parliament adding to Tension so hopefully sub 5000 today

tradetime

Errors happen all the time, it's one of the reasons every broker runs a dedicated "Errors Account" it's just they are not usually that big, but I'm sure you can imagine when you do something you didn't mean to do, then the magnitude will simply be a function of luck and any fail-safes you have setup Like I say, I'm more in the camp of a freak combination of events. The market will tell us today anyway, if it was real selling then we go down again, if it was some sort of error(s) then we will go up.

tonygee_3

Going to be a LONG morning for anyone who just bought
Expecting the FALL to begin shortly

turbobob

tonygee wrote: »

Hung Parliament adding to Tension so hopefully sub 5000 today

Not sure on that but if the last few days have shown us anything, it's that anything can happen! Wish I'd left a UKX short open after the market closed yesterday that's for sure. Spreadbet/CFD quotes on UKX were apparently as low as the mid 4000's when all this was happening last night.. I suspect they'd have found a reason for not paying out if I'd tried to close a short at those levels.

tradetime

turbobob wrote: »

Spreadbet/CFD quotes on UKX were apparently as low as the mid 4000's when all this was happening last night.. I suspect they'd have found a reason for not paying out if I'd tried to close a short at those levels.

I don't think they're that bad are they?

cloud_dog

Not as much carnage as I thought, in fact most of my stocks (PMs) are blue.

But, as mentioned by others.... there's a long day ahead.

StevieJ

We were looking for a 10% correction and that is what we have/had, S&P has been down over 11% as has the Ftse 100 also, time to top up ?

StevieJ

tonygee wrote: »

Good morning gents,
There is plenty of discussion,possibly rogue trader trying to deliberately unsettle markets.Also read NASDAQ cancel trades over 60%,bit of a bummer for you,trade,youll have to give back all those millions;)
It is absurd if 'mistake' and unlikely with billions of global trades daily it would happen at least daily?
Hung Parliament adding to Tension so hopefully sub 5000 today

Don't think so a hung parliament was firmly priced in.