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NYSE Invokes Rule 48 To Pre-Empt Selling Panic
The status quo must be maintained...
- *NYSE SAYS RULE 48 INVOKED FOR MARKET OPEN
- *NYSE SAYS MANDATORY OPENING INDICATIONS ARE NOT REQUIRED
And what better excuse to stall the opening plunge implied by futures than the "blizzard" which never was... The last time this was invoked was June 2012 (amid a dramatic drop in pre-open futures) and Sept 2011 amid the chaotic 400-point swings in The Dow. Funny they do not use this "Rule" when futures indicate massive upside opens?
Via NYSE:
Rule 48. Exemptive Relief — Extreme Market Volatility Condition
(a) In the event that extremely high market volatility is likely to have a Floor-wide impact on the ability of DMMs to arrange for the fair and orderly opening, reopening following a market-wide halt of trading at the Exchange, or closing of trading at the Exchange and that absent relief, the operation of the Exchange is likely to be impaired, a qualified Exchange officer may declare an extreme market volatility condition with respect to trading on or through the facilities of the Exchange.
(b) In the event that an extreme market volatility condition is declared with respect to trading on or through the facilities of the Exchange, a qualified Exchange officer shall be empowered to temporarily suspend at the opening of trading or reopening of trading following a market-wide trading halt: (i) the need for prior Floor Official or prior NYSE Floor operations approval to open or reopen a security at the Exchange (Rules 123D(1) and 79A.30); and/or (ii) applicable requirements to make pre-opening indications in a security (Rules 15 and 123D(1)).
(c) A suspension under section (b) of this Rule is subject to the following provisions:
(1) (A) Before declaring an extreme market volatility condition, the qualified Exchange officer shall consider the facts and circumstances that are likely to have Floor-wide impact for a particular trading session, including volatility in 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 such other market conditions that could impact Floor-wide trading conditions.
(B) Such review shall be undertaken in consultation with relevant officers of NYSE Market and NYSE Regulation, as appropriate. Following the review, the qualified Exchange officer or his or her designee shall document the basis for declaring an extreme market volatility condition.
(2) The qualified Exchange officer will, as promptly as practicable in the circumstances, inform the Securities and Exchange Commission staff that an extreme market volatility condition has been declared, the basis for such declaration, and what relief has been granted.
(3) An extreme market volatility condition may only be declared before the scheduled opening or reopening following a market-wide halt of securities at the Exchange.
(4) A declaration of an extreme market volatility condition shall be in effect only for the particular opening or reopening for the trading session on the particular day that the extreme market volatility condition is determined to exist. The Exchange may declare a separate extreme market volatility condition on subsequent days subject to sections (b)(1) through (b)(3) above.
(5) A declaration of extreme market volatility shall not relieve DMMs from the obligation to make pre-opening indications in situations where the opening of a security is delayed for reasons unrelated to the extreme market volatility condition.
(d) For purposes of this Rule, a "qualified Exchange officer" means the Chief Executive Officer of ICE, or his or her designee, or the Chief Executive Officer of NYSE Regulation, Inc., or his or her designee.
* * *
As WSJ explains, basically it means the designated market makers “will not have to disseminate price indications before the bell, making it easier and faster to open stocks.
The rule was approved by the Securities and Exchange Commission on Dec. 6, 2007 and has been used rarely since then.
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it's exactly like Calvinball.
make up the rules as you go.
btw, where have you gone. bill watterson???
calvin & hobbes the best comic strip evah!!!
Double secret probation, mister.
It's amazing all the "rules" the Wall Street mafiosi have set up for themselves to continue their thievery. How long will it go on? Utterly surreal.
Imagine if there was an actual crisis. Good luck cashing in your casino chips if you're holding paper gold or any other paper promises.
BLAAAAAAGAGAGAAAAHHHHARRRRRAGAHAGARAHAAGGHHHH!!
RUNNING AROUND, public HAIR ON FIRE
Will you accept these bags of hair from pubis? I can have 500 more by friday- borat
Our growth is a laughable joke
We're hearing the world is now broke
The moment we fear
Is now drawing near
So rule 48 they invoke
Nice, breaking out the safety nets. Let the fuckers fall already.
It's not the fall that kills, it's the sudden shitgummin'.
Tell me about it!
Fuck the revolution, bring on the apocalypse.
Looks like they are pushing Russia to just that too!
http://www.blacklistednews.com/Medvedev_Warns_Of_%22Unlimited_Reaction%2...
Funny they do not use this "Rule" when futures indicate massive upside opens?
That's not funny. Not funny at all.
The fix is in, on Fraud Street!
The NYSE is located in Atlantic City? Whocouldaknode?
They're just trying to save you! Imagine getting your arm burned back to your elbow by Fuld. Hasn't anyone stretched that fuckers neck yet?
"It's amazing all the "rules" the Wall Street mafiosi have set up for themselves to continue their thievery."
Yes. It is all so lawful, transparent, fair, due-processual...I think I have to vomit.
We live under a criminal corpratocracy, I suspect that these young people will finally begin see the dangers of old people (Especially in the gov.) soon enough....
... "Start spreading the news ..." ... ~ Sinatra
In other words, let's stop in order to let everyone put on another set of leathers for the inevitable coming road rash from this steep slide...
Ah, but when it opens +300 that's alright then - Cheating Cunts
Buy the dips already!
try reading Get Fuzzy. Prickly City is also real good at bashing Hillary.
try reading Get Fuzzy. Prickly City is also real good at bashing Hillary.
Watterson offered advice to college grads in 2013, and someone illustrated it in the C&H style - it's pretty moving stuff. You can see it at http://www.huffingtonpost.com/2013/08/29/bill-watterson-advice-to-college-grads-illustrated-like-calvin-and-hobbes_n_3837271.html.
I think the message would actually resonate with many ZHers.
I had not seen that before, it is awesome and I agree wholeheartedly.
Advice to young people: live.
Interesting link. Except at the end it looks like the guy, despite having eschewed the common wisdom, is still in a rut, just one of his own making.
There was another party involved...
And if he is happy in his "rut" (I do not know why you'd call that a rut...) then he has achieved more than many will ever realize.
(They grow up too damned quick.)
The fire escape is stopped up with bodies Bitchez
Spiderman Towel anyone ? Open up Bitcheeez
PANIC!
Pussies
How does that help? Wouldn't that increase any panic selling?
*puzzled*
It won't help. When markets would open again it will continue when the real crash occurs. We will likely be asleep when the wheels come off in the USA.
I predict that after an interesting hour at the open the PPT will step in and save the market. Would not be surprised if it closed green today.
They should just set prices for all stawks. That will fix those pesky "free" markets.
Step one: No more markets open to the general public. All exchanges to be run privately and only available to qualified and registered market participants (rules to be determined by the individual exhanges). No public dissemination of securities or broad market price levels.
Far fetched?
ICE had to publicly deny that they were planning on closing the NYSE and taking it private the other day. Should tell you something about where this is all headed.
'This is a private club, and you're not in it.'
Nothing to sell here, just walk on by.
We are witnessing the largest LBO in history. Companies are buying back stawks, and central banks everywhere are buying up what's left with digital promises.
Yeah, this is all gonna be taken private eventually. The other day I thought central banks were buying stocks to turn themselves into sovereign wealth funds. I think I was wrong. I think it goes well beyond that. Buy the stock and you get to tell the companies what they can and can't do. Centralized market control. Pure and simple. Real market forces are too disruptive to the status quo so they must be completely eliminated.
Agreed. Like it or not, we are all communists now.
Buy the stock or provide the fiat loan to the company buying back the stock. Either way, in the end, they own everything. Been saying this for a while now, thank you.
Oh no, this has nothing to do with the Greece elections, nothing at all!
Volatility = Down
Have I got the math right?
Just a reminder, kids, this is a preview of how it will end when the wheels come off for real. You won't have to worry about "getting out" of the market in time. There simply won't be a market to trade. "We're closed, please come again." And then it's just.... over.
Yep. I believe we will see it sooner than we think.
Do you think that if NYC had actually had a blizzard with multiple feet of snow that maybe today would have been the day?
'Nothing to sell here, just walk on by'.
And when the vultures are done with the bones the gates will open for the plebs to survey the devastation. Chocolate Jesus will come rolling out on his cross and give out directions to the FEMA camps. The crisis will then be over.
And lets not forget about the Gold Cap they put in place about a month ago. So they freeze the markets for your own good and put runaway collars on traditional safe havens.
Pass the popcorn, somethin' tells me the entertainment value will be off the charts, literally.
Panic selling?!?!?! This is the Dear Leader Obama RECOVERY, peoples!!!! Be happy no matter how bad things are - OR GO TO JAIL. Dear Leader and his ilk insist. It's THE LAW.
</s>
Mission Accomplished II
QUIET! He's putting.
I read recently (in a Richard Maybury book, either "The Money Mystery" or the next one, "The Clipper Ship Strategy") that in the inflation in France they passed laws criminalizing talking against the paper money. That didn't work so "the last straw" was when the government passed a law against the seller asking what currency the transaction would be demarked in -- with the death penalty for asking such a question!
Their death throes are noticeable and welcome, just as long as they keep the rest of us out of it.
Can't let the 1% lose money...
Fine, it will only delay the action
It depends on how many public "you were thinking of selling?" floggings take place in the next hour.
You can check in any time you like. But you can never leave.
Roach Motel. "Roaches check in, but they don't check out"
Nothing to do with us, fellows. Its just to give the boyz a little time.
PS: "Jump you fuckers!"
English speaking soldiers in Ukraine and 20 other things you should know – Video
Rebels capture Ukraine commander in Donetsk airport fight, force prisoners to face angry crowds
So what about the Ukrainian speaking soldiers right here in America? Why do they never get coverage?
And the genocidal cunt keeps lying through her fucking teeth!
"Jew" Psaki
http://sputniknews.com/military/20150127/1017379428.html
Remember folks..... "Those that panic first, panic best."
buy the central bank intervention
START THE MONEY PRESSES!
If DOW opened UP 300, there would be no invoking of emergency anti panic measures.....they'd be blowing their trumpets over on CNBS.
yeah, jizz trumpets
get ready to btfd bitchez because if you blink you're gonna miss it
that yellenator is out there. she doesn't feel pity, or remorse, or fear, and she absolutely will not stop, ever, until your trading account is dead.
Only 2 types of people believe in the system anymore: Crooks, and retards.
I think that might be anti - semitic.
Oilgarchy at its....I mean Capitalism at its finest. Hooray for the free market system.....
Time to trot out a Central Banker to soothe the markets with talk of moar money from the money spigot.
FUBAR.
Where's Rule 69, when market opens up in buying orgy and Exctasy, Viagra, and KY kits are handed out?
I like your thinking.
Popcorn...check
Theater seats at full recline...check
A frosty Hamms beer....check
I picked a bad day to start shorting the VIX. /s
"Rule 48"...
With all these made up rules to halt trading periodically when things don't go the "Wizards", way some times for several minutes, and sometimes for longer....
Why doesn't the NYSE advertise that it's HFT can be linked to our military movements around the globe?
So if it drops several hundred points in a few minutes we go to war with Djibouti?... If it drops slightly more than 1,000 points we go to war with Yemen?... If it drops several thousand points in a day we declare war on Syria?... And if completely "flatlines" we announce war with Russia?...
Oh wait a minute?...
My bad!... Already doing those things!!!!
They got algorithms for all that.
The final rule is always "Rule .308"
The only question is: Are you the enforcer or the enforcee?
A measly two-percent drop in futures is enough for the panic button to be hit?
"Welcome to the US Stock Exchange. No selling allowed."
yop. I first thought it was lame of TD to make an article on a 3% drop, but nowadays it looks like a stupendous crash...
Selling is defeatism, it's treason. Pretty soon people would be saying the war in Russia is lost, no no, can't have that being said in public.
This made me chuckle, as it's along the same lines as:
Exhaling is defeatism. We will win! We will only inhale!
:)
"International Monetary Fund (IMF) Managing Director Christine Lagarde said yesterday that the U.S. Federal Reserve will raise interest rates in 2015, probably around the middle of this year.
1/22/2015
July 7th?
I thought rule 48 was the one where there must be porn for everything in existence.
Will Bullard save the world day?
The Blizzard has caused a spike in unemployment and depressed durable goods orders but we are on track for a rate increase in 2016 and maybe not late 2015.
I would bet the companies stop the stock buybacks....they are going to need the cash now to survive....that will put a dent in the volumes
They need time PPT must have breakfast first
Order 66?
wrong article--my bad....
Grimaldus
Excellent observation.
What's the volume look like? I mean, if folks are selling... someone's buying. So while it may be a "panic" to some, it's a picnic for others.
What's the volume look like? I mean, if folks are selling... someone's buying. So while it may be a "panic" to some, it's a picnic for others.
Yes indeed a "picnic"... As P.T. Barnum so eloquently put our situation into timeless words
"There's a sucker born every minute"!... And of course he was so very right!
Think of your acquisition(s) over the counter or chair f as you are helplessly "bent over" from this day forward as nothing less than another form of "civil forfeiture"!
Enjoy your healthy trading Z!!!
Rule 48 allows the FED time to adjust their software applications.
Where was this Rule 48 for PM holders over the last three years, lol.
"No selling today, bitchez."
So, it's sort of like Foxconn for Wall Street?
When Janet announces the date and time "Rule 48" will be there...
As long as it takes!...
Theyre sceered.
Good rule. Now why don't they have one to slow the rapid and irrational BUYING by automated systems?
As of late (years) the market has advanced using the "Greater Fool" principle. This rule is an attempt to prevent the latest "fool" from losing too much money all at once.
Ah, rule 48, AKA the OH SHIT RULE!
Dammit the plunge protection team is stalled in the snow. We cannot open until they make it too work!!
Someone must have heard the cracking of the Shitgum. Either that or one of the head honchos did a show and tell at work and displayed their new nail gun.
I think freedom35 from trailer park boys is more Barry's speed....
What we need is a miraculous Oil ramp out of nowhere to Rally the Dow 500 points....
Rule #49: Please pass the nail gun.
They can slow it down, but they can't stop it. And if they slow things too much, THAT will cause panic selling because people will think something must be VERY wrong...
Sorry guys...there HAS to be selling, whether you like it or not. People who bought stocks, and now want to cash out, will not be convinced to do otherwise just because you make it harder. In fact, the harder you make it, the more pressure will get put on the sell side.
You have to re-open markets eventually, can't keep 'em closed or restricted forever.
We have nothing to fear but fear itself
Wish I could descend from the heaven's in broad daylight and hover over Wall Street, then openly speak to a shcoked crowd of how corrupt the Equity Casinos have always been.
Then hand them the "New Rules", Rule #48 won't be one of them. In the event Wall Street Banks & Brokerages etc. don't conform they will be zapped Dead, live on the internet.
I keep reading about how good everything is. Such low unemployment and look at the market numbers! I would hate to see things going badly if these are good times.
Many sites are really good for laughs when they talk about how great president Obama is and what a good job he is doing.
I guess people really do believe anything when it is said enough times.