Broken Market Ignites Momentum In Stocks

Tyler Durden's picture

Earlier today, just after the market open, the Directedge/BATS EDGX Exchange broke. This is what BATS said at 9:41 am:

Please be advised that BATS has halted trading on EDGX Exchange to investigate an issue related to platform modifications rolled out today. Will advise.

Surely it was a complete coincidence that just as BATS broke (again) the market soared, and peaked within minutes of BATS reopening at 10:20, when it blasted the following notification:

Please be advised that all issues at BATS EDGX Exchange have been resolved. All systems are operating normally.

And then, several hours after the surge, BATS was kind enough to provide us with the post-mortem:

Please be advised that BATS EDGX Exchange experienced an issue related to new functionality involving certain Price Adjust logic that went into effect today. The issue only occurred during a crossed market. All impacted members have already been notified. Upon identification of the issue, BATS halted trading on the EDGX Exchange market at 9:41:38 AM ET to investigate. A software issue was identified, a patch was applied and trading resumed as of 10:20:00 AM


ET.Additionally, please note that Members with a default port setting of 'P' (Price Adjust) will have their default port settings automatically updated to 'S' (Display Price Sliding) effective tomorrow. Members that wish to continue to default to Price Adjust price sliding behavior should contact the BATS Trade Desk.

Of course, what happened within EDGX is irrelevant. What is relevant is what happened in the market.


*  *  *

BATS - Making Markets Better...


Or Making Markets Broken-er

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Al Huxley's picture

Is the 3:30 ramp on schedule today?  I want to get my bids in, but don't want to jump the gun.

UndergroundPost's picture

Greece exit turns PIIGS into PIIS (pronouced PISS) which is what markets will be doing all over themselves once the contagion starts leaking.

trader1's picture

have humans put too much full faith and credit in the current system we call financial markets? 


LawsofPhysics's picture

yes, but then again, what is the average wealth of people on this planet?

NoDebt's picture

"EDGX Exchange experienced an issue related to new functionality involving certain Price Adjust logic"

I'm encouraged that they will get the bugs worked out of the 'Price Adjust' logic.  Apparently it was erroneously allowing prices to adjust DOWN, where it was designed to only allow UPWARD adjustment.

trader1's picture

so what you are saying is that there's a lot of rich, dumb money controlling the capital markets these days....

Rainman's picture

Too many humans are morons ...don't need no current system to know that.

KnuckleDragger-X's picture

Its all shiny, just drink some cheap whiskey and start pushing buttons.....

rejected's picture

On schedule it seems at 3:50.

TheLooza's picture

But I mean a seriously for a minute, WTF? 

DetectiveStern's picture

They know most people are distracted by flags and terrorists or too stupid/naive to understand what this means so they can be as blatant as they want.


EDIT: Seriously why impliment such a change to a system at the opening after the Greek thing? WTF?

Philo Beddoe's picture

Fuck Bats. Fuck stocks. Fuck Europe.  Watch Oil. This fucker cracks $40 and it will get very interesitng very quickly.  How does September sound? The single most important asset...outside of water...going down the drain means somehting. 

greenskeeper carl's picture

Yes indeed. That, in conjunction with the BDI, signals that global demand and commerce are collapsing.

Kaiser Sousa's picture

a complete fucking farce....

and so is the following...

nickels's picture

This kind of crap ( and the "overnight gap") is the only way to make money now.

aliki's picture

JMO but i think something else is starting to happen. i have alot more confidence that SBUX, JPM, GS, DIS, KRFT, etc. are going to pay their dividend and/or pay both whatever interest on their debt + the principal than i do any degree of sovereign paper. governments around the world are broke & going broker. unless/until they decide to step-in & start confiscating personal property, corporate property - seems like the "flight to safety" is more-so in the corporate debt market & dividend payers. this all changes if & only if there is a shock to the upside in interest rates. obama administration might have just solved that problem tho; reduced the default risk on UST by freezing the debt clock. LO fucking L. gotta hand it to obama - he gets shit done. completely the wrong shit & we are gonna hit the wall at about 100,000 MPH but he gets his agenda thru, over, and around the constitution, congress, etc., etc., etc. dude just does't give a fuck about anything but what he wants. would be nice to see a ron paul get in there and just stop ALL governement spending for 4 years and tell anyone who dare deny him to fuck-off.

Consuelo's picture

Following the 'trifecta' of his (3) wins - TPP, Marriage, ACA, his poll numbers last week rose to somewhere in the mid 50's if I remember correct.    In any event, with these decisions and the supposed rising poll numbers, the height of arrogance (for him and our entire political leadership) either looms or has passed, and what comes next is extraordinary history in the making.

aliki's picture

@consuelo - i fell the fuck over last week when i heard CNN or MSN call it "the obama administrations best week ever".

TPP - those who voted for obama get fucked the hardest/driest: just see NAFTA results for evidence there

gay marrige - i could care less about this issue (although IMO it should be a state issue and not punted over to the supreme court)

ACA - awesome. today we find out health providers are seeking double-digit minimum, most likely in the ball-park of 20-40% premium increases next few years. you mean, dumping all those sick/pre-existing people into the current pool is NOT going to drive DOWN prices??? unimaginable

i found myself saying if THIS is your best week ever, your presidency was 1 gia-nor-mous cluster fuck.

LawsofPhysics's picture

Unfortunately, all that debt has compounding interest, so even if you "freeze" spending, the math is still going to kill you without some additional revenue generation...

I see plenty of local producers already asking for something a bit more real in exchange for their labor.  It can be just about anything, tax break, zoning law change, access to a local resource etc.  If they can't do that and already have a cash cushon then they are buying real assets and supplies that won't go bad.  The truth is that inflation has been here for a while already.  Global Weimar bitchez...

Oldwood's picture

Ron Paul riding a skittle shitting rainbow colored unicorn straight up the Whitehouse steps....I can see it now.

Yancey Ward's picture

Bears get batted.

trader1's picture

do humans still operate financial markets, or do we think this is the best it can get in the world of fOS (financial operating system) running global and local economies?  


wee-weed up's picture

Read "Flash Boys" by Michael Lewis if you want to know how the markets REALLY work.

trader1's picture


and my response is again, a question: 

this is the "best" we can do?


Soul Glow's picture

Stocks down, oil down, copper down....


Who's winning today?


Ness.'s picture

The day is not over my friend.  they erased a 35 piont drop in s&p in a matter of minutes.  They have very fat fingers and can't afford to lose the illusion.  Even if we finished down on the day (stocks) this is still a win for the CB's.  s&p down about 0.55% on the day when Greece leaves the Euro  #winning

Osmium's picture

Not sure I understand the fasination with Greece.

If I counterfeit $1000 and give that to my brother in law and he spent the money and then told me he couldn't pay me back, would I care?  I just used him to test my product without any risk to me.  Now I can counterfeit as much as I like. 

Oldwood's picture

So don't be surprised when things are bad enough to see a major banquet at the garbage dump.

Money has to be running away from Europe and China by the boat load, so why wouldn't Wall Street be up and away. People foolish enough to bet on Chinese and European markets are definitely dumb enough to bet on Wall Street...the last great bastion for scoundrels.

mr.n3utr0n's picture

Price Adjust Logic = never let anything bad happen or the market gets it.

thamnosma's picture

Silver now red for the day, Gold still green but dropping fast.  Nothing seems to move that market up, nothing.

mr.n3utr0n's picture

Notice how it shot up last night when trading began, then got squashed almost as fast.

Philo Beddoe's picture

Gold and silver need better social media representation. 

Hey, did you hear...Kim K has a gold bar in her pussy! I want one now. 

Trucker Glock's picture

Markets are a fucking joke.  And not a funny one.  I don't know why I look at this shit.  Tank, you motherfuckers!

brushhog's picture

So what is ZH implying? BATS broke and they somehow rigged all the markets to go up?

If some people are powerful enough to do that, and powerful enough to rig the price of gold ( world wide ), and all the other things on earth that they are rigging ( votes, weather patterns, etc ) then doesnt that make the case against gold, and against markets collapsing? Shouldnt we buy the dip if the people rigging it are so all powerful?

gcjohns1971's picture

What if market makers were directed to implement "Plunge-Protection" logic algorithms?

What if the Fed directed them to do this?

What if the way they do it is to buy/sell things that they cannot deliver...ergo manipulate the market with processes long considered fraudulent, and long illegal?

What if the Fed promised to reimburse market-maker's reserve accounts for the amount of loss they incur while doing this?

What if the Fed were largely reliant on the market's own reporting mechanisms to determine how much to reimburse?

What would such a revelation say about the real value of the Dollar?

optimator's picture

First thought, a little far fetched.  Second thought, if you'll never have to undergo an audit you can do whatever you desire.

LooseLee's picture

What if 'they' are all executed in public (Super Bowl Sunday would be a good venue) for all of this Pinko Fascist Commie fraud they are perpetrating? Now that's a "What If" you can believe in!

gcjohns1971's picture

9 Meters/Second squared.

That is the free-fall acceleration caused by gravity on this planet.


If we report for 100 days or so that Gravity did not accelerate anything... will it change the damage done by the conservation of energy when objects hit the ground?


It is a strange VOODOO-believing world we live in right now.

jubber's picture

#Dow up 50 now AH

t0mmyBerg's picture

rufkm? with the bats break market surge chart?