This page has been archived and commenting is disabled.
NYSE Invokes Rule 48 For Second Day In A Row Ahead Of Market Open
Precisely 24 hours ago, in an attempt to pre-empt the panic-selling open, the NYSE invoked the little used Rule 48, which was to be expected: the Nasdaq 100 has just tumbled limit down and the S&P and DJIA would follow shortly. Today, however, it is unclear just why the NYSE decided to once again invoke Rule 48 as futures are set to open about 3-4% higher, and yet that is precisely what the NYSE did. As a reminder, what this means is that mandatory opening indications are not required, which in theory should make it easier to open stocks.
As further reminder, yesterday in conjunction with the liquidity meltdown, this led to mangled ETFs left and right. Let's hope today is different, even though as we showed earlier, ES liquidity today is even worse than yesterday.
The complete reminder of what Rule 48 is:
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.
»
- 26582 reads
- Printer-friendly version
- Send to friend
- advertisements -
Bullish. Normal. Efficient. Markets.
the NYSE didnt want this dead cat bounce to last only till 9:35, thats why. Must give an impression that this bounce is sustainable.
We're on an express elevator to hell, goin' down!
So all this stock market gyration & commodities crashing; derivatives doing just dandy? How?
See Hedge Fund article above.
T-D,
I just caught this story over at Blacklisted News. Seems the whole ALTERNET is getting the ZH feed, now. IMAGINE THAT!
"RULE 48 for the NYSE" reminds me of the old 'Star Trek' stuff where the Ferengi 'Rules Of Aquisition' were the LAW in Quark's Bar (over on the Babylon-like 'Deep Space Nine'). I'm 'NOT' a SCI-FI fan (but, I play one on T.V.).
That REMINDS ME: Isn't the New York Stock Exchange a PRIVATELY-HELD FOR-PROFIT CORPORATION?
I was waiting for the DUKE BROTHERS to open the TRADING WINDOW in the WTC COMPLEX and yell 'TURN ON THOSE MACHINES, GODDAMNIT', but it seems that Mortimer isn't feeling well today (must be all the WTC dust-syndrome-related issues). I'm NOT an 'ARRON RUSSO' fan (but, I play one on T.V.). Just in case, I've stacked several cases of FCOJ (and a monkey suit) down in the basement freezer. LOOKING GOOD, LEWIS!
I upvoted you, because we all know that's why they invoked this rule today.
BTW, I see Tyler(s) have gone full-board with the ads here on ZH. It's frustrating trying to get this site to load anymore, even on my fast work computer.
Get Firefox browser and Adblock plus. Now!
or ghostery. everytime i load this on tor, which doesn't block adds, im blown away at how much bullshit is on here
Firefox with adblock plus and NoScript works just fine on my 10 year old Dell!
Also, even with adblock plus, Firefox is better with youtube also ... you get much fewer ads.
<S> ON
Tsar,
8088 machines have several issues (not the least of which is the download speeds associated with phone modems). Have you considered updating to a newer machine that uses 5 1/4" AS WELL AS 3 1/2" floppy discs? One in the 10100-range perhaps?
HMMM??
<S> NOT QUITE OFF
Watch out for automatic downloads in the files AKA 'HKLM:\ SOFTWARE\MICROSOFT\WINDOWS NT\CURRENT VERSION\SCHEDULE\TASKCASHE\TREE\Security Center Update - (followed by a grundle of numbers)'. Strange stuff, this update. WINDOWS NT is the ONLY system that USGOV is using (AND AUTHORIZED TO USE), by the way. Seems to be downloaded as 'automatic updating' as a precursor to Windows 10 downloading. The adware and malware programs are just NOW catching this shit (I have Malwarebytes). DO NOT OPEN OR ATTEMPT TO CLOSE any of these 'ads', as they will download malicious software onto your computer/device/phone line. GOD, I HOPE you are not using a fucking BLACKBERRY or OTHER 'mobile' device... like (S)HITLARY RODHAM HUMA-CLITTON did... with a server in the bathroom of her boyfriend's/girlfriend's/'SIG-OTHERS' apartment... less secure than 'Ashley Madison''s 'server' was...
<S> OFF (?) NOT!
I think that the Russian and Chinese girls that are advertised as 'life-mates' here on Tyler Durden's ZH are actually quite attractive. Since I don't own or hold any Renimbi (Yuan, SOON-TO-BE-WORLD-RESERVE-CURRENCY) or Rubles, however, these girls are unnaproachable. I'd appreciate a more localized set of ads, depicting street whores and common gutter-sluts in Toronto, Detroit, NYC, L.A., or 'my local town' that take MASTERCHARGE (because it's everywhere that I don't want to be; 'THE INTERBANK CARD', T.M.). i'm SURE that your complaints regarding your whining about the lack of adblocking on this website will be taken in the spirit that it is given (but I'd rather see Ameritrade ads; combined with the local prices of a girl named 'Shaniqua X. Chutman').
<S> OFF (FOR REAL)
STFU, and be thankful that you can still get information that is NOT bullshit. If YOU have an issue at YOUR end, take care of it, or quit bitching and go back to ERIN BURNETT and JIM CRAMER.
Sorry, Skippy, if this sounds 'harsh'. Life's A BITCH.
The new terminator 2 HFT algo is much aggressive than the Xe 1.
The EIGHTH ESTATE.
Jack Blood interviews Richard Andrew Grove.
"WHO KILLED JOHN O'NEILL"?
'High Frequency Trading' backdoor algorythyms...
T-1000 (Xe-1) was the lab-rat experiment (Waco, Ruby Ridge, TWA 800, etcetera). T-2000 was the 'beta test' (live, but in isolated areas, like the WTC complex, ET.AL).
BE CAREFUL, MONAD. You may be fucking with the 'essential powers of the universe', here (I AM, but I have no reason to care).
https://www.youtube.com/watch?v=wpl503nxeac
https://www.youtube.com/watch?v=waEIAsqMLiA
https://www.youtube.com/watch?v=jUGV5V4w7H0
https://www.youtube.com/watch?v=SGXzAhTFIco
AUSTIN, TX. Is 'gound zero', right now.
http://www.blacklistednews.com/AUSTIN_POLICE_INSTITUTE_%22NO_REFUSAL%22_...
Working over the populace in the name of 'safety', I suppose.
I think your on the money, Monday we had five waves down to the low and today a nice corrective pattern.
We going into wave three which in Elliot wave analysis is never the smallest impusive set. The biggest question is will wave five extend???
My guess with plenty of margin debt still in the market it will!
The monthly chart of the CAC40 the recent top forms a triangle that started back in 2000. The bottom of the triangle is a 50% retracement.
If your in the market your mad!
They really know how to instill confidence.
You can bet your the rest of your life on that, the baby boomers sure are.
In the much hated baby boomer category, that's not a very big bet. I'm a boomer and I'm doing ok either way. Kick the can and I'm doing ok. Crash and burn I should survive as well as anyone. Until then I'm enjoying every day the sun rises
In your photo..you are looking good
Some algos need to be more equal than others.
Don't need much time to buy or sell, but need time to settle.
Funny I never thought you could actually hate a whole generation, but I guess there are some that will.
The Boomers will get most of the full frontal force of this Frankenstien Monetary experiment gone bad IMO. Of course some Boomers will do great like...fill in the blanks.
I have seen how pre Boomers are going to make it to the end, and those after, like myself, are just counting on this whole thing to go wrong and waiting.
I know some like popcorn, but while this crap unfolds, try painting, leather work (I think S&M may be a good business in the aftermath), or even a little Croche?
Jim Crochet.
http://www.lyricsfreak.com/j/jim+croce/gunga+din_20493788.html
i am watching CNBS and I want it to tank as soon as it opens. Jim cramer is on, and id like to see his head explode, please
We'll see what we can do.....but 10 minutes is not a lot of notice.
I smell lots of fear out there. Crazy, eh, considering the fundamentals are so "awesome" according to Barry.
N.J. Supermarkets Laying Off 8,648 Employees on Thanksgivinghttp://patch.com/new-jersey/mahwah/nj-ap-stores-laying-8662-employees-th...
Better than Christmas layoff.
Just once!
Carl what are you doing with that lawnmower blade?
Ain't too many people who'd fix ye some biscuits at 3 in the mornin'.
Don't forget the mustard.
Mickey Mouse market.
I picked up some TZA in the premarket.
That took balls...
that s another tool to make order out of chaos.
We want Janet...
We want Janet..
We want Janet...
Speech Janet!... Speech!... Speech!...
Down with the Proletariat! Up with the Zionist!!
S/
But, but, but.... the market indicates up?
Now I am really confused
Futures pump / rule 48 notwithstanding, I can't imagine anyone not using this opportunity to sell into strength at the open. Why risk catastrophic loss for a few points waiting for things to settle down. We shall see.
My biggest fear is listening to the perambulls at my office cheer and high five today when they were crying like little bitches yesterday.
take solace in the fact that the people in ur office r morons....
stay up.....
The rallies are what keep the idiots in the game. If you really want to screw them, just give them a high five and say "I was wrong."
I don't wish them I'll will, I just want them to shut up. It's already started btw. Of course they are lawyers so are barely tolerable to begin with.
Yesterday was an excellent day for me. Today, I think I'll layer on a short position.
Another trader whistling in the dark.
Nope, I just accept reality as it is and make the best of it. I don't let how I think things should be dictate my actions when it comes to the "market". Works well for me.
Theoretically many of us should have been able to make almost 10 dollars a share on apple yesterday, straight buy and sell.
10,000 of $96 dollar stock, sell for $8 gain maybe... 100 shares X $8 = $800 minus fees.
But seems like a big risk on $10,000 for small gain.
I only use options in this "market". That way I risk very little capital when this pig finally vaporizes.
Nothing persional, but nobody is interested in what you or I may or may not be trading. Usually a sign of a beginner.
Careful on the position sizing, on the way to the basement, these rallies are going to be tremendous.
The time has come!
https://youtu.be/sNjWpZmxDgg
But, But, the government told us to buy stocks and shop for cars and stuff...
http://www.marketwatch.com/story/wall-street-set-to-rebound-after-massiv...
https://youtu.be/Qd43i1Sf0TY
Thank God im out after my vix play. This market is totally fucked up.
I think we will see many more of these and other little rules...its how the new game is played by the big boys....they can figure out how to get around these rules and use it to their advantage...and they will....
Must Restore confidence, make up new rules as needed. As a matter of national security any and all rules must encourage only orderly and upward stock movement.
New Rule #1: Bearishness is racism
New Rule #2 Selling is criminal
New Rule #3 Short selling is terrorism
They should install water-boards on all exchanges to remind all sellers of the penalty for doing so.
Can't wait til they pull out rule #69.
A great selling opportunity today. Get out before the music stops.
The Titanic has tipped enough that all of the deck chairs have slid off into the ocean.
When the music stops, there will be no where to sit down, and the water is mighty cold.
maybe they were limit up, ?!!!????!?
must constrain the panic buying
Be like China...
Thanks to all who prompted me to install adblock for Firefox. It's working wonders for me!
http://abcnews.go.com/Business/wireStory/dutch-nutritional-supplement-ma...
I guess it's a global reckovery.
How long before they make selling criminal like China?
The Emperor told them to "Execute Order 66".