Bangladesh Suspends Brokers For Selling Shares Into Third Market-Halting Stock Market Crash
It was ten short days ago that the Bangaldesh stock exchange was closed for the 2nd time in a month, after it plunged by almost double digits in the span of minutes. Subsequently, it pulled as US-type flash crash, PPT-sponsored HFT recovery.... only to make third time the charm: BBC reports that earlier today the Bangladesh index fell 8.5%, or 587 points, which
forced regulators to suspend trading.This is the third suspension in a about month and the second free fall plunge in January. Everyone in Asia is getting spooked by China's lack of liquidity. But not the US. We are all hoooou kay. But that's not all. The chery on top is that the Bangladesh regulator, which more than anything is in dire need of its own plunge protection team, or least GETCO to serve as "DMM" (wink wink) for the entire exchange, has suspended brokers for having the temerity to sell into today's collapse. In other words: next time someone tries to sell into a market plunge, tough luck.
From the BBC:
Bangladesh has suspended six trading houses on the main Dhaka Stock Exchange.
The move came after a fall on the index of 8.5%, or 587 points, which forced regulators to suspend trading. This was the second such plunge this month.
Angry investors threw stones at police and smashed vehicles in protest at the suspension of trade.
The Commission has placed a six month ban on the six companies over charges of market manipulation.
"We have found that these brokers have sold huge shares at abnormally low prices just after the market opened," Securities and Exchange Commission member Muhammad Yasin Ali told the Associated Press.
And don't think the porn fetishists at the SEC are not keeping tabs: they may be poor, and they may be spending all their taxpayer appropriated money on a T-100 feed to midgetporn.gov but that doesn't mean they are completely retarded. Actually, we scratch that. That said, for all those hoping to flip that grenade to another greater fool the next time the US market has a wipeout, they may not be so lucky.
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