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NYSE Invokes Rule 48 In Anticipation Of Extreme Volatility
The NYSE hedged its bets earlier by invoking the rarely used Rule 48, which "provides the exchange with the ability to suspend the requirement to disseminate price indications and obtain floor-official approval prior to the opening when extremely high market-wide volatility could cause delay opening securities on the exchange." The full disclosure was made on the NYSE blog:
Rule 48 is intended to be invoked only in those situations where the potential for extreme market volatility would likely impair floor-wide operations at the exchange by impeding the fair and orderly opening of securities. Accordingly, the rule sets forth a number of factors to be considered before declaring such a condition, including:
- Volatility during the previous day’s trading session;
- Trading in foreign markets before the open;
- Substantial activity in the futures market before the open;
- The volume of pre-opening indications of interest;
- Evidence of pre-opening significant order imbalances across the market;
- Government announcements;
- News and corporate events; and,
- Any such other market conditions that could impact floor-wide trading conditions.
And some other "do not panic, we have nothing under control" information dissemination by the NYSE:
The invocation of Rule 48 is in effect only for today. Previously, the NYSE invoked the rule on 11 March, 2008; 23 Jan., 2008; 22 Jan., 2008; and 12 Dec., 2007. The rule was approved by the Securities and Exchange Commission on 6 Dec., 2007.
Now add 17 March, 2008 to the list. I kind of had an uneasy feeling all weekend about Bear Stearns, and felt even worse upon seeing the announcement on Sunday night. To my train buddy at Bear Stearns and his colleagues, I'm sorry to see this happen.
And just for reference, here's a link to our circuit breakers. Here's hoping we don't need them today. Or any other day, for that matter.
Good luck today, everyone.
Good luck indeed.
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And they're off...
Have you ever seen an hungry algorithm drool?
Rule 48, the proverbial finger in the dam. Next thing you know, the short sellers will be brought out for a very public flogging.
The old tried and true Jedi mind tricks are usually the best when dealing with the hive mentality. Be quiet, the spirits are about the speak.
I just got an email from TD Ameritrade the other night stating there's new, stricter, margin requirements on leveraged ETFs. Coincidence? Perhaps.
You left out, of course, that Rule 48 would only ever be invoked if the market looked to be opening lower.
And then there is the even more rarely used Rule 49 which states:
"The market is currently closed for repairs. Come back when you are in the mood to buy."
+ Priceless!
They used that one in the UK:
http://www.prisonplanet.com/stock-exchange-crippled-as-technical-hitch-h...
They used that one in the UK:
http://www.prisonplanet.com/stock-exchange-crippled-as-technical-hitch-h...
At this point, nothing should surprise us. If the market turned green today it wouldn't surprise me a bit.
And the trading fl of credit suisse is on fire (litterally) everyone evacuated. Talk about luck!!
Is the Fed buying equities too?
Only when it pleases Goldman.
The sale is on and it will not last long.
Of course the Fed is buying. We should close green today. Dubai? That's on a whole other continent!
They invoked it today? This is just a blip.
Fed buys all sorts of s### except gold
Has assumed that it and other central banks actually short gold.
Chit!
The link ("One day only") is for March 17th, 2008. Haven't found other references to Rule 48 via Google News.
http://www.nyse.com/audience/marketprofessionals.html
Then look at the "NYSE System status" in green.
http://www.nyse.com/equities/nyseequities/Today_Alerts_New.shtml
That shows it happened TODAY.
THIS LOOKS REAL TO ME, NOT A JOKE!
Click You can't handle's link please.
NYSE, Yer-Next!
Ummm, did they announce this today? The link is from last year.... That's not cool, but who am I to judge
http://www.nyse.com/audience/marketprofessionals.html
According to the system status notice, it says the rule was invoked today at 9:10am. I can find no mention of it searching Google news. *shrug*
http://en.wikipedia.org/wiki/Article_48_(Weimar_Constitution)
Article 48 (Weimar Constitution) From Wikipedia, the free encyclopedia
Article 48 of the constitution[1] of the Weimar Republic of Germany (1919–1933) allowed the President, under certain circumstances, to take "emergency measures" (including the promulgation of legislative decrees[2]) without the prior consent of the Reichstag (German parliament).[3] Legislation promulgated under this article of the constitution was referred to asNotverordnung (emergency decree). Article 48 was used by Adolf Hitler in 1933 to establish a dictatorship, ending the Weimar Republic and ushering in the Third Reich.
rt
Reichstag fire at Burj Dubai?
That's a stretch, even to me, but I've seen stranger causal links.... nice find, ty
Hmm, Article 48, Rule 48. Then comes to my mind the complete absurdity of Andrew Jackson on the US $20. Are TPTB the ultimate jokester's or what?
Don't lament... We could have Bush, or Obama, or who knows? I'll tell you what - if I am ever President, removing Andrew Jackson from our currency will be one of my priorities. Now, sleep better and don't worry about the Indians.
Don't lament... We could have Bush, or Obama, or who knows? I'll tell you what - if I am ever President, removing Andrew Jackson from our currency will be one of my priorities. Now, sleep better and don't worry about the Indians.
Just sit back, continue to let the turkey settle and while the wife is out shopping - The robots will make it all right once again.
Aaaahhhhhh!!! There it is.
the markets are so obviously in a state of computer controlled farce
a sickening criminal racket
I can't believe all people aren't screaming bloody murder about this
What people? Oh, those down at Walmart and Target snapping up the Black Friday bargains? Those people? The people who matter are screaming -- keep reading ZH.
There are no "people" left in the markets. It's all computers and day traders at this point. Most retail investors left after the S&P went to 1000.
FED to announce bailout package for Dubai. 85 Broad front running??? lol!
Don't laugh.
"Systemic Risk" could also apply to the worldwide "system". It certainly would classify as an emergency, would it not?
There is nothing in place at the moment that can stop the FED from buying/backstopping ANYTHING it wanted to. It's balance sheet is infinite.
Think about it. Won't you?
The PET on the job. EURUSD moving on up as shiploads (or shitloads?) of dollars depart port of New York bound for distant shores to succor suffering bondholders in areas pummelled by recent storms.
Because we need a black friday funny....
Shaping the Minds of America
http://www.huffingtonpost.com/2009/11/27/15-toys-not-to-buy-your-k_n_351369.html?slidenumber=%2FeZL5pmGaOo%3D#slide_image
Incredible, just fricken incredible. Tells us more about this country than we really want to know.
Thanks for the link lizzy.
That says it all... what a tiny tidbit that says so much about the current state of disrepair in America!
Too funny. I like that bestiality kiss toy sold at Walgreens. Amazing.
http://www.huffingtonpost.com/2009/11/27/15-toys-not-to-buy-your-k_n_351...
hillarious! who said the best & brightest work in finance?
Made in China, surely.
Notice the squid that comes with the second toy?
The PlayMobil Security Checkpoint
"Now with working Mini-Taser!!!"
"When suspect/terrorist is clubbed about the head and face and then violated with a broom-stick it let's out a blood-curdling scream. Just like in real life!!!"
For ages 3 and under.
Notice the head of Safari Spiderman compared to Beach Spiderman-looks like he's already been on safari and met the Tribe of the Head-Shrinkers...
All I've seen since the open is a frantic attempt to pump it straight back up. I can't really say that I am surprised either. I can recall many occasions over the last few years when foreign markets sold off big (rationally) overnight only to be followed by a "miraculous" burst of optimism once US markets opened. In fact, it was the repeated occurrence of that scenario that knocked me off the fence and convinced me that yes, the US equity market is indeed manipulated. I don't know if it will hold or not but I think the attempt was fairly predictable.
Totally agree, the DOW is used to control the World markets, it has happened so many time I have lost count. I am UK based and wrote this on another Forum yesterday while the FTSE was suspended due to a "technical" issue.
Yesterday
Someone was suggesting the PPT would be in action
Yes DOW will be used to stabilise things tomorrow, it is a little too early for them to let the DOW correct, they need to squeeze as much out of the consumer as possible in the build up to Christmas. It is still possible they will allow a correction nearer to Christmas once the shopping is done and people have their minds on other things. The markets at these levels are comical but are the only thing backing up the propoganda they launched in March in the world MSM.Rule 49 - The EURUSD can never trade below 1.48 ever again. Even if the whole of Eastern Europe defaults.
no volatility today, amazing....how involved do they need to be in order to not have 20-30 point swings(during a crisis)
That ICE sharp rise was not a "technical glitch" 4 sure!
On the agenda next week. Best Black Friday for 18 years, and unexpected job creation for Friday's payrolls.
New rules from today onwards, only buys allowed, no shorts, and no selling of long positions
Hey, apropos of nothing, thought you'd all like to know that the city of Salinas in California has brought in US military counter-insurgency advisers to help stop the raging gang violence there. I wonder how long they will remain advisers...
http://globalguerrillas.typepad.com/lind/2009/11/on-war-323-milestone.html
Ever thought of deporting the mexicans??
stfu. go back to your double-wide in alabama
Who thinks that a United States filled with Mexicans is going to remain a first-world nation? Anybody??
Mexico is a failed state and the Mexicans are turning the U.S. into a failed state.
I didn't know the bankers were Mexican.
...or the politicians.
End drug prohibition and 90% of all gang problems will disappear overnite.
How many Budweiser deliverymen were killed by Coors deliverymen yesterday?
It's La Familia vs. the Mexican Mafia. Most of them are US citizens, born and raised here.
I told you HAL9k would fix that, it just takes time to boot after a holiday.
Child's play to call this one based on the recent past. There is no way a crash, mini or otherwise, will be allowed in the US stock markets on the official kick-off day of the Xmas Shopping Season. We end up - at worst - with equities, gold and dollar barely off their Wednesday close, and an S&P run up on schedule for next week. Leo K. says we'll have some sort of shockingly positive employment report soon. Thoughtful guy though he is, and no doubt many degrees of IQ smarter than me, I don't believe it for a minute, and even if it is announced, it will be a lie.
The herd is being played like a violin into year end. Know it, trade on it.
Dow down 130 on some of the worst financial news since Lehman...yeah there is nothing going on there. Do Tim and Ben get year end bonuses?
Job creation next week.
Risk assets just became risk free.
Junk any ole junk, buy your stocks at the highest level, come and get your expensive stocks, hurry hurry hurry,
special offer, huge mark ups on bankrupt companies, get them while you can
Let's face it - The CIA and US Homeland security run the markets. All this right and wrong crap that everyone argues about is meaningless when national security is at stake.
Talk amongst yourselves:)
When will they bring out Directive 10-289?
Last year.
2 words--- GLOSSED OVER.
The link is from March 2008, I cannot find anything that shows this is current. Can you provide a better source for this?
why bother to invoke 48 as the fed printed and bought the market. proof positive is we are steadily rising. if we finished green, i would not be the least bit surprised.
this will work until it doesn't. once we hit that point, it will be ugly. at some time the devalued dollar and a zero interest policy will cause not an implosion, but an explosion.
Just another VWAP reversion, only on a longer time frame. SunSPARCs kicked in right on schedule.
CNBC:
There's so much energy at this LA area Best Buy. CAN U FEEL IT? MP3 players and Xboxs flying off the shelves. Lines are huge. HUGE! People have been waiting outside since October. BUY BUY BUY BUY BUY!!!
I turned on CNBC today to watch them spin the Dubai thing, which they did of course, but the cheerleading on Black Friday is so horrible I had to turn it off. I really wonder how some of those people can sleep at night knowing their job involves nothing more than being paid liars. Pathetic.
Cnbc has killed more people, the elderly and naive, than Hitler. I dont know how they can live with themselves. They are no different than a thug that snatches an old ladies purse off the street. I despise them.
Tyler, the link you posted to the news is old one. I found nothing in the news sites. where did you get that, they involved 48?
Go straight to the NYSE for this one:
http://www.nyse.com/equities/nyseequities/Today_Alerts_New.shtml
thanks a lot!
It's the best Black Friday in 18 years, we should have a recession and credit crunch every year.
I stand corrected
That it could have been a joke (there is enough material around to support it) shows just how surreal our situation has become. Don't spend any time on it Lizzy....
Rule 48: Is that a bazooka in your pocket, or are you just happy to see me?
Where in the hell is Nouriel Roubini?
Getting schooled by Nassim Nicholas Taleb?
Nice one, MsCreant...
Actually he is recovering from his Thanksgiving feast with 40 friends and three turkeys. I was not aware economists even had 40 friends?
God what a set up Sqworl!
Okay, I'll bite, how do you tell the economists from the turkeys?
Turkey stuffing is edible...lol
I like it.
edit
diet tide
Congressman Charles A. Lindbergh Sr on the Federal Reserve Act (December 22, 1913)
"This Act establishes the most gigantic trust** on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts** will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress... The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government."
Why today and not Monday (yet)?
Hmmmm....I can't wait to hear the conference call this weekend.
http://www.secretofoz.com
http://video.google.com/videoplay?docid=-515319560256183936#
--
1. end the criminal Fed and enact our own Sovereign currency (see 'Secret of Oz') that isn't debt based (no interest) controlled by the people through Congress (a better one that isn't filled with Marxists)
2. enact a consumption based tax system like the Fairtax
www.fairtax.org
That is exactly the same "strategy" as in computer games - load the last saved game when you were lost and quick save after each successful turn. There will be "unable to load" error someday. =)