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BATS Withdraws IPO

Tyler Durden's picture


The caped crusader will not save the day:


Sheer humiliation for SkyNet (and all those momos who had hoped to flip their BATS shares, but were bailed out by a bidless HFT market once again) which just blew its own foot off.

From Bloomberg:

Bats Global Markets Inc. said it withdrew its initial public offering, according to an e-mailed statement. The company priced the deal yesterday.


“Although our affected market has reopened, in the wake of today’s technical issues, which affected the trading of certain stocks, including that of Bats, we believe withdrawing the IPO is the appropriate action to take for our company and our shareholders,” Joe Ratterman, the company’s chief executive officer, said in a statement.


Asked if the statement meant Bats isn’t going public, Randy Williams, a company spokesman, replied by e-mail, “Yes, that’s correct.”

And from the official PR:

"Although our affected market has reopened, in the wake of today's technical issues, which affected the trading of certain stocks, including that of BATS, we believe withdrawing the IPO is the appropriate action to take for our Company and our shareholders," said Joe Ratterman, chairman, president and CEO of BATS Global Markets.

No Waddell And Reed was scapegoating in the making of this epic HFT farce.


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Fri, 03/23/2012 - 15:48 | 2284708 Id fight Gandhi
Id fight Gandhi's picture


Fri, 03/23/2012 - 15:53 | 2284719 overbet
overbet's picture

Bats exchange regretfully wish to inform all invitees to tonights celebratory events at cipriani wall street, that this event is now cancelled. Awwwwww .......... Hahaha

Fri, 03/23/2012 - 15:54 | 2284731 ShankyS
ShankyS's picture

Was Sault involved? I'm sure it is all Raymond James' fault. 

Fri, 03/23/2012 - 16:08 | 2284761 Xibalba
Xibalba's picture

"You 'muppets' just got Corzined!"

Fri, 03/23/2012 - 16:27 | 2284870 Manthong
Manthong's picture

long guano

short belfries

Fri, 03/23/2012 - 23:19 | 2285907 What does it al...
What does it all mean's picture

Wait, if this is an IPO and it's the first day of trading...  Who placed the offer?

Where do they get the locate for such short?

What happen to lock-up period?

Are the option market makers skirting the rules as usual?

Since BATS yanked the IPO, all sell long/sell short orders are ILLEGAL and NEED to be investigated.

Of course, SEC will ignore all this and that is why they pulled the IPO.

Sat, 03/24/2012 - 01:16 | 2286049 Ahmeexnal
Ahmeexnal's picture

wall street got pwned by a bunch of script kiddiez running their opensource HFT.

Sun, 03/25/2012 - 07:56 | 2288113 What does it al...
What does it all mean's picture

BATS CEO is now saying that they had problem with the auction process... and tried to bury the fact that there were more than 1 Million shares TRADED that day.

GETCO has about 1 million shares... the plot thickens... 

Fri, 03/23/2012 - 16:37 | 2284923 Id fight Gandhi
Id fight Gandhi's picture

I think corzined means to just outright steal your clients money to pay your lenders and hope you don't get caught.

To get BATS'ed your rigged market is too rigged to rig your own IPO churn payday.

Fri, 03/23/2012 - 16:12 | 2284789 Cdad
Cdad's picture

Deeper and deeper down the rabbit hole the criminal syndicate known as Wall Street tumbles.  Now introducting the UNpo.  Uh huh.  Because the market could not be rigged so that the shares soared out of the gate, the "investors" who bought in are only too happy to be a part of the UNpo and get their cash back.  

So for BATS, I guess, it is onward into obfuscating the SEC per all of its HFT market manipulations that they carry out on a daily basis.  Great.  

All following on from the Great TVIX debacle, which, btw, was a scam that provided much needed support for the zero volume melt up equity rally.  And of course, the TVIX was just another set up for folks, and is absolutely certain to have "created out of nowhere" shares for syndicate firms to sell into oblivion, even as the collapse resulted from no shares being created.  I'm sure the SEC will get right on this one, as well.

I'm sure if rabbit hole activity continues apace, millions of average Joes everywhere will flock to the non market to plunk their hard earned dollars down in the syndicate's safe keeping.  After all, who doesn't just love J. Dimon and L. Blankfien?  Who doesn't trust them to be caretaker of American wealth?

The Greater American depression will simply roll on and on until such time as these banks and broken exchanges are finally purged, broken up and dumped, so that real capital formation can actually occur.

What a complete joke.

Fri, 03/23/2012 - 16:57 | 2285017 FreeNewEnergy
FreeNewEnergy's picture

I'll stick to the ponies. It's much safer and you actually get paid when you win.

Fri, 03/23/2012 - 19:08 | 2285462 johnQpublic
johnQpublic's picture

the borgata will be happy to see me back in their poker room

Fri, 03/23/2012 - 22:42 | 2285859 dark pools of soros
dark pools of soros's picture

you mean the other players... the house just pinches from the winners

Fri, 03/23/2012 - 17:09 | 2285050 Stax Edwards
Stax Edwards's picture

The really sad thing was that looking at order flow prior to the open there was a lot of demand to BTFD on TVIX this morning.  A sucker is born every minute by god.

Fri, 03/23/2012 - 17:17 | 2285072 Cdad
Cdad's picture

I'm sure there was, as TVIX is below NAV now...but since criminal syndicate banks can sell millions of shares that do not exist, the BTFD camp never had a chance.  TVIX will bounce, though, I suspect.  And probably violently so...not that this will comfort those who have been holding it for more than a week.

Fri, 03/23/2012 - 15:54 | 2284728 fightthepower
fightthepower's picture

Bush's Fault!

Fri, 03/23/2012 - 16:02 | 2284752 Sudden Debt
Sudden Debt's picture

And now it's up to Robin to ride alone...

Sat, 03/24/2012 - 06:39 | 2286247 StychoKiller
StychoKiller's picture

"To the Bat-ticker, Robin!"  :>D

Fri, 03/23/2012 - 16:11 | 2284783 vast-dom
vast-dom's picture

public at $0.00000000000000000000000000000000000001 +/- $0.000000000000000000000000000000000000000000000000000000000000000000000000001


what's the short again?

Fri, 03/23/2012 - 20:33 | 2285655 CitizenZeus
CitizenZeus's picture

Maybe, BATS and MERS could merge and form a super debacle conglomerate IPO (with MF Global serving as counsultants).  As a sweetener they're going to be selling in the negative numbers.  They'll pay you to try them and buy them. Just be prepared to have that money rescinded and promised to 20 other people.  

Fri, 03/23/2012 - 15:49 | 2284711 bag holder
bag holder's picture

What about the million shares that already traded? Are they seriously taking a mulligan? Doesn't that fly in the face of the rule of law? Do you get to undo your IPO just because the market priced it to zero?

Fri, 03/23/2012 - 15:56 | 2284735 Comay Mierda
Comay Mierda's picture

this and other recent debacles should make 2012 a bullish year for lawyers

Fri, 03/23/2012 - 16:22 | 2284842 SheepDog-One
SheepDog-One's picture

You'd think that with just 2012 market events the whole thing would be flooded with lawsuits to the point the markets would have to be shut down.

Fri, 03/23/2012 - 16:46 | 2284970 Idiot Savant
Idiot Savant's picture

"Even though BATS had priced its IPO, it was still able to withdraw the deal because the trades weren't scheduled to settle until March 28."

Is this excuse legit?

Fri, 03/23/2012 - 20:33 | 2285656 smiler03
smiler03's picture

Is this excuse legit?

Here's a clue: "Wall Street"

Fri, 03/23/2012 - 15:56 | 2284738 Al Huxley
Al Huxley's picture

It's like a do-over.  It's what you let your young children do to make them feel good when they're trying hard to learn some new skill and don't quite have it yet.  Or what fucking Wall Street crooks do when shit turns against them and they start losing.

Fri, 03/23/2012 - 18:17 | 2285306 veyron
veyron's picture

The technical term is etch-a-sketch

Fri, 03/23/2012 - 22:45 | 2285863 dark pools of soros
dark pools of soros's picture

training wheels cant save that fat bat tard from driving its new IPO

Fri, 03/23/2012 - 15:57 | 2284741 LongSoupLine
LongSoupLine's picture

Doesn't that fly in the face of the rule of law? "Hello you've reached the SEC.  We're too busy punching the clown to some midget porn right now, please call later"!

Fri, 03/23/2012 - 16:07 | 2284764 DCFusor
DCFusor's picture

No, when your stock goes under 2c, you buy it all....then try again.

Fri, 03/23/2012 - 16:08 | 2284771 aerojet
aerojet's picture

What else can they do?  They crashed and burned on the world stage. It's all over. 

Fri, 03/23/2012 - 15:50 | 2284712 Eisenhorn
Eisenhorn's picture



Fri, 03/23/2012 - 16:26 | 2284862 WTF_247
WTF_247's picture

don't worry the CEO and management will still get their big bonuses.  They can blame tech errors for the valuation at 0...

Fri, 03/23/2012 - 20:00 | 2285598 mendigo
mendigo's picture

Leeeeeeeroy Jeeenkins!!!

Fri, 03/23/2012 - 15:50 | 2284713 overbet
overbet's picture


Fri, 03/23/2012 - 15:52 | 2284714 LawsofPhysics
LawsofPhysics's picture

Wait what?  Will all the money be returned to investors?  What the fuck is this?  Will the NYSE simply stand up and say "Just kidding".  This should do wonders for market CONfidence.  That explains why the VIX went down, not.

Fri, 03/23/2012 - 16:40 | 2284939 Id fight Gandhi
Id fight Gandhi's picture

I would hope everyone is made whole immediately. Otherwise this another lump they'll take. It's obviously the worst IPO in history already,

Oh they can say its just a tech error, but shit, its their own stock on their own exchange.

Fri, 03/23/2012 - 18:24 | 2285326 blu
blu's picture

The money will simply "vanish"

Fri, 03/23/2012 - 19:11 | 2285467 johnQpublic
johnQpublic's picture

i believe the term is 'evaporate'

Sat, 03/24/2012 - 02:36 | 2286126 Oh regional Indian
Oh regional Indian's picture

Actually I think it's re-evapottycated.


Fri, 03/23/2012 - 15:50 | 2284715 RacerX
RacerX's picture

Lemme guess. It was the early spring, right?

Fri, 03/23/2012 - 16:29 | 2284881 Global Hunter
Global Hunter's picture

are you implying they could seasonally adjust the prints at 0.00 back to say 16.75?

Fri, 03/23/2012 - 15:51 | 2284716 Seize Mars
Seize Mars's picture

Ha ha ha ha hahahahahahah HAHAHAHAH HA HAAAAAAAAA!!!!!

Fri, 03/23/2012 - 15:52 | 2284718 TruthInSunshine
TruthInSunshine's picture



BATS is overthrown by rebel code embedded in its own algorithm, and is forced into "strategic retreat" from market on IPO day.


BATS will re-IPO shares when rebel defecting code fomenting rebellion is quashed, which CEO pledges will be "very soon."

Fri, 03/23/2012 - 15:53 | 2284725 resurger
resurger's picture

What is this chip?

are they going to implant this shit in you!!!

fuck that

Fri, 03/23/2012 - 20:42 | 2285666 smiler03
smiler03's picture

Hi resurger, welcome to the 21st Century.

If you bothered to read the Wiki link you posted then you would know that this technology was patented 28 years ago and is alive and kicking in your local Walmart ;O) Wakey Wakey!

Fri, 03/23/2012 - 15:52 | 2284720 LongSoupLine
LongSoupLine's picture



...and the markets are green...what a complete and total monkeyshit of a farse this "market" is.

We should be limit down across the board!!!

Fri, 03/23/2012 - 16:18 | 2284820 SheepDog-One
SheepDog-One's picture

Theyve made the 'markets' 100% fake....this is what we get now till 'the next thing' happens. That thing being of course bankers losing money.

Fri, 03/23/2012 - 16:33 | 2284900 Global Hunter
Global Hunter's picture

its clear they're trying to sucker retail back in but most investors have left the ship a long time ago I suspect.  Its just them playing with themselves literally.  WW3 could break out, billions dead and the Dow could go to 50,000...or maybe it will go to zero and they'll just close it down for the day and have a do over the next day.  The indices are just arbitrary numbers made up by a select group of bankers.

Fri, 03/23/2012 - 15:52 | 2284721 qussl3
qussl3's picture

It's obama's fault.

It's bush's fault.

Oh fuck it.

Fri, 03/23/2012 - 15:56 | 2284739 Tsar Pointless
Tsar Pointless's picture

It's Carter's fault.

It's Ford's fault.

It's Coolidge's fault.

It's Harding's fault.

It's Wilson's fault.

Wait - I think I hit on something with that last one.

Fri, 03/23/2012 - 16:03 | 2284756 optimator
optimator's picture

Wilson could have killed the FED.  He also could have "Kept us out of war"

Fri, 03/23/2012 - 16:08 | 2284773 aerojet
aerojet's picture

Kennedy tried, but they got him first.

Fri, 03/23/2012 - 16:15 | 2284800 stocktivity
stocktivity's picture

That's right...It's all Bullshit!

Fri, 03/23/2012 - 17:01 | 2285032 FreeNewEnergy
FreeNewEnergy's picture

Sorry, it's all BATShit. Fixed it for ya.

Fri, 03/23/2012 - 20:12 | 2285623 mendigo
mendigo's picture

I think you are on to something - this is a paradym shift a new unit of measure.

Sat, 03/24/2012 - 11:19 | 2286549 roadhazard
roadhazard's picture


Fri, 03/23/2012 - 15:54 | 2284726 pleseus
pleseus's picture

All of these HFT's provide maket liquidity, till they don't.  Liquidity is a two way street. 

Fri, 03/23/2012 - 16:10 | 2284775 TruthInSunshine
TruthInSunshine's picture



There's a Stellar Wind blowing past the bucket shop of Wall Street
Every day there are Ponzi schemes a'flowing

There's a hot war coming on the radio, I heard
Baby, it's a fractional reserve fiat world

Fri, 03/23/2012 - 20:45 | 2285679 smiler03
smiler03's picture


Bruce Springsteen 2013.

Fri, 03/23/2012 - 23:55 | 2285948 palmereldritch
palmereldritch's picture

 Born in the NSA!

Fri, 03/23/2012 - 16:51 | 2284992 Id fight Gandhi
Id fight Gandhi's picture

Liquidity is just a lie they sell. That means they can sound noble to the people who don't understand the marketplace when they're quote stuffing and HFT

Fri, 03/23/2012 - 18:35 | 2285366 Widowmaker
Widowmaker's picture

Liquidity = printing money.

Smack yo mama.

Fri, 03/23/2012 - 15:54 | 2284729 resurger
resurger's picture


Fri, 03/23/2012 - 15:54 | 2284730 Burr's 2nd Shot
Burr's 2nd Shot's picture

"It's a test, designed to provoke an emotional response."

Fri, 03/23/2012 - 18:26 | 2285332 blu
blu's picture

"My mother? Let me tell you about my mother --"

Fri, 03/23/2012 - 15:55 | 2284732 Marge N. Callz
Marge N. Callz's picture

It was all Waddell & Reed's fault!!!!

Fri, 03/23/2012 - 15:56 | 2284740 niceguyeddie
niceguyeddie's picture

Nope.  This is simply seasonally adjusted IPO action.  Move along. 

Fri, 03/23/2012 - 15:56 | 2284737 godzila
godzila's picture

Can you actually "undo" an IPO ??

Amazing times we live in !

Fri, 03/23/2012 - 16:16 | 2284809 ZeroPower
ZeroPower's picture

The syndicate bankers are not leaving without their fair share of commission (i.e. cancel fees) let me tell you that much.

Fri, 03/23/2012 - 16:52 | 2284988 o2sd
o2sd's picture

Good to see you back here ZeroPower.

Fri, 03/23/2012 - 15:57 | 2284742 Vincent Vega
Vincent Vega's picture

I can't help but wonder if the IPO would have been pulled had those pesky computer systems kicked the stock price up to $35/share???

Fri, 03/23/2012 - 16:01 | 2284748 Schmuck Raker
Schmuck Raker's picture

BATS what I'm talking about, right there.

Fri, 03/23/2012 - 16:00 | 2284746 t_kAyk
t_kAyk's picture

damn solar flares...

Fri, 03/23/2012 - 16:02 | 2284750 Schmuck Raker
Schmuck Raker's picture

damn HAARP...

Fri, 03/23/2012 - 16:00 | 2284747 Dr. Engali
Dr. Engali's picture

Now that's funny. I don't care who you are.

Fri, 03/23/2012 - 16:02 | 2284754 ABG LINE
ABG LINE's picture


Fri, 03/23/2012 - 16:04 | 2284757 lolmaster
lolmaster's picture

how the c*** do you withdraw an IPO? "uhm ... our bad fellas... "

Fri, 03/23/2012 - 16:05 | 2284758 Lazarus Long
Lazarus Long's picture

wish i could have done the same after the condome broke

Fri, 03/23/2012 - 16:07 | 2284767 Cursive
Cursive's picture

Holy lulz. We're an exchange and we can't exchange our stock.

Fri, 03/23/2012 - 16:45 | 2284964 nmewn
nmewn's picture

lol...keep them away from the launch codes.

Fri, 03/23/2012 - 16:09 | 2284776 ag3nt0rang3
ag3nt0rang3's picture

I bet the dow the comex and other US exchanges are behind this. Perhaps an attempt to discredit and destory a competing exchange while making them themselves look like the "safe" places to trade.

Fri, 03/23/2012 - 16:10 | 2284781 BlackholeDivestment
BlackholeDivestment's picture

looks like Corzine is busted


Fri, 03/23/2012 - 16:36 | 2284915 Global Hunter
Global Hunter's picture

today is a wonderful day to be a part of the Zero Hedge readership, I'm looking forward to the comments on the Corzine piece after this one.  Reading TDs posts and the readers comments has given me a lot of laughs today.

Fri, 03/23/2012 - 18:37 | 2285371 Widowmaker
Widowmaker's picture

Your comment is a sentiment inflection point.

When reality is a joke, the punchline is failure.

Fri, 03/23/2012 - 20:08 | 2285614 UP Forester
UP Forester's picture

I thought the inflection point was when my wife started laughing at the talking heads.... and lost interest in Jerseylicious and the Real Housewives....

Fri, 03/23/2012 - 20:52 | 2285689 smiler03
smiler03's picture

Talking Heads: Psycho Killer


If only everybody gave a clue to what their youtube video was about, I'd have saved hours of wasted time.

Fri, 03/23/2012 - 16:11 | 2284786 SheepDog-One
SheepDog-One's picture

Just another day of Calvinball for Wall St...if it goes well then the rules are ok, if they lose, do-over.

Fri, 03/23/2012 - 18:29 | 2285345 blu
blu's picture

Calvinball. Man did you ever call that one right. These lunatics just make shit up as they go.

Fri, 03/23/2012 - 16:12 | 2284788 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture


Fri, 03/23/2012 - 16:15 | 2284792 Sequitur
Sequitur's picture

Name: BATS Global Markets.

Logo: "Making Markets Better."

About BATS: "Driven by its mission of 'Making Markets Better,' BATS has become synonymous with great technology, aggressive pricing and outstanding customer service while catering to the needs of the broker-dealer and trading community."

Lulz to the lulz, this wonderous "market operator" has to shitcan their own IPO.

Though I do agree, their name is now synonymous with "aggressive pricing," albeit of the race-to-the-bottom variety.

Fri, 03/23/2012 - 18:31 | 2285353 blu
blu's picture

BATShit is going to become an epic meme around here. After about a month of being used as a ZH bunching bag 24x7 they'll have to change their name.

I hear "Xe" is already taken ...

Fri, 03/23/2012 - 16:15 | 2284793 cheesewizz
cheesewizz's picture

I did not know you could do

This will be a classic for some time to come.

What a day LOL

Thanks Zh


Fri, 03/23/2012 - 16:17 | 2284814 Piranhanoia
Piranhanoia's picture

BATS CEASES OPERATIONS:  We retroactively quit.  We have contacted our former and future clients and they understand.  the Stupidvisor.

Fri, 03/23/2012 - 17:50 | 2285188 PrDtR
PrDtR's picture

Nice Handle! PIRANHANOIA!!

Fri, 03/23/2012 - 16:19 | 2284823 ndotken
ndotken's picture

IPO's on "do-over" ... quotes that are off by 10% ... TVIX plunging without explanation ... and 55% of US equity trades being done by high-freq algos ... why would any of that make the retail investor uncomfy???

Fri, 03/23/2012 - 16:25 | 2284858 SheepDog-One
SheepDog-One's picture

Cant be good for Wall St frontmen CNBC who is desperately trying to make the case that retail is burning and churning to get in and buy the top of this pump now.

Fri, 03/23/2012 - 20:10 | 2285619 UP Forester
UP Forester's picture

I can hear it now....

"You gotta buy it now, it CAN'T get ANY LOWER!!!"

Fri, 03/23/2012 - 16:22 | 2284833 AlaricBalth
AlaricBalth's picture

Looks like that $100,000,000 payout is just going to have to wait.

Lehman Brothers Holdings was offering 3.034 million shares. OOPS!!!


Use of proceeds

We will not receive any proceeds from the sale of our Class A common stock by the selling stockholders in this offering, including any shares sold by one of the selling stockholders in connection with the exercise of the underwriters’ option to purchase additional shares to cover over-allotments. See “Use of Proceeds.”

Dividend policy

On February 22, 2012, our board of directors approved a cash dividend of $100 million in the aggregate to stockholders of record as of the close of business on the day immediately prior to the closing of this offering as a return of their capital. The dividend is conditioned upon the successful completion of this offering, and purchasers in this offering will not be entitled to the dividend. We currently plan to retain any future earnings for use in the operation of our business and to fund future growth; therefore, we do not currently intend to pay dividends on our common stock in the foreseeable future. Any future determination to pay dividends will be at the discretion of our board of directors.
Fri, 03/23/2012 - 16:38 | 2284931 Global Hunter
Global Hunter's picture

these dummies probably paid it out already, the BATS collection agency is born.

Fri, 03/23/2012 - 16:25 | 2284857 Global Hunter
Global Hunter's picture

Laughing my ass off.

Fri, 03/23/2012 - 16:28 | 2284877 The Beam
The Beam's picture


Fri, 03/23/2012 - 16:30 | 2284889 vincent
vincent's picture

Better Alternative Trading System.

They should've hired that little girl from the Suzi's Lemonade commercial.

That kid's got it together.

Corzine gonna need her lawyers too.

Fri, 03/23/2012 - 16:33 | 2284901 PaperBear
PaperBear's picture

I thought I had seen everything but I haven’t.

Fri, 03/23/2012 - 16:38 | 2284929 karzai_luver
karzai_luver's picture

Just WHOM is the Joker in this shit anyway?


Fri, 03/23/2012 - 16:44 | 2284955 Curt W
Curt W's picture

In other IPO news, Didn't Zynga go public less than a month ago and now the officers are cashing in $200 Million of the preferred stock.

What is up with that?

Fri, 03/23/2012 - 16:48 | 2284978 Contra_Man
Contra_Man's picture

Now what>? Fat Fingered BATS?

Fri, 03/23/2012 - 16:49 | 2284980 irishlink
irishlink's picture

I think a super hacker was hired by NYSE and LSE to screw up this IPO . These guys cannot afford to loose any more market share, 11% is a fair chunk in such a short time. 100 mil would have helped greatly in attracting more business. Any views on this idea.

Fri, 03/23/2012 - 18:39 | 2285376 blu
blu's picture

Not a hacker, if this was a job then it was an inside job: Pass some coder an envelop under a table at Micky D's, back at the farm they tinker with some code or a server config, and then when some trigger comes over the fence the whole thing blows the fuck up.

If it blows apart badly enough there won't even be any evidence laying around, digital or otherwise.

Someone then walks away, turning out the lights on the way, pretending to give a shit.

And scene --

Fri, 03/23/2012 - 16:58 | 2285020 NumberNone
NumberNone's picture

Don't worry, Obama has just issued an Executive Order giving authority over all stock transactions to TIm Geithner and the Treasury Department in order to prevent this from happening again.  All is well. 

Fri, 03/23/2012 - 17:17 | 2285070 lizzy36
lizzy36's picture

This is funny.

Last IPO pulled after is started trading (in 1993): Wilt Chamberlain Restaurants Inc.

Questions over full disclosure in the company's prospectus haunted the offering, materializing the first day of trading, when the company's stock started out between $6 to $8 a share before falling two days later to $4.63. The IPO cancellation was a major embarrassment for Myers Pollock and Robbins, a 50-year-old investment and brokerage firm that was underwriting its first initial public offering.


Fri, 03/23/2012 - 17:26 | 2285099 NumberNone
NumberNone's picture

Probably the only time Wilt Chamberlain ever pulled out of something..

Fri, 03/23/2012 - 17:49 | 2285186 veyron
veyron's picture

Swing and a miss!

Fri, 03/23/2012 - 18:13 | 2285285 Smiley
Smiley's picture

"I'm taking my ball and going home!"





You wanna play in the ocean you better be ready to deal with the sharks!

Fri, 03/23/2012 - 18:14 | 2285292 adr
adr's picture

It's just too damn bad this happened on a Friday. Imagine if this shit was on a Monday.

Fri, 03/23/2012 - 18:23 | 2285327 jack stephan
jack stephan's picture

hahahahahhaa bitchezz, how does anyone with two brain cells even attempt to try the market, oil and gold flash crashes, 75,000 trades in a nanosecond to kill silver, apple troubles, muppets and a dishonorable honorable corzine as the cherry on top.

shaping up for a hell of a year. who knows


Fri, 03/23/2012 - 18:26 | 2285333 mendigo
mendigo's picture

Garbage in - Garbage out

Great way to end the week - TGIF!

Mission Accomplished


Thanks Zero Hedge

Fri, 03/23/2012 - 18:27 | 2285339 spekulatn
spekulatn's picture

Premature ipo ejaculatn, bitchez.

Fri, 03/23/2012 - 18:30 | 2285352 disabledvet
disabledvet's picture

Did they withdraw of go bankrupt? I mean they did go public did they not? "And then traded to zero"...which is a bankruptcy, yes, yes?

Fri, 03/23/2012 - 18:43 | 2285389 junkyardjack
junkyardjack's picture

Next up, Facebook...

Fri, 03/23/2012 - 18:49 | 2285406 SantoDomingoMingo
SantoDomingoMingo's picture

Bats is based in Kansas City and has about 100 employees.  Their corporate office is literally in a strip mall.  They have built themselves into the 3rd biggest US stock exchange by delivering superior execution liquidity and stability doing more with less.  NYSE and NASDAQ are terrified by this obviously because BATS' lower cost structure could put them out of business were it a fair market place.  NYX and NDAQ have been buying up smaller exchanges, reducing overhead in effort to increase margins.  But this hasnt been a successful strategy because commissions and trading volumes have evaporated

I do not know exactly why the exchange went down today for several hours but it reaks to me of foul play. One thing for sure, you wont see a detailed report from Nanex or an appearance by Joe Saluzzi on CNBC to tell you what happened.

This is NOT a victory for the small trader against HFT but a victory for the entrenched powers on Wall Street.  It is yet another an illustration of just how cozy the relationship between Wall Street and the WSJ - or between big business and big media for that matter.  

What a coincidence that a front page article runs the day of the BATS IPO! Dont kid yourselves, HFT has their tentacles in all 3 major US equity exchanges (and every exchange in the world) but the WSJ would not let you know it.  The SEC is breathing down the neck of every exchange, investment firm and HFT firm all the time its no different today than yesterday.  If you have ever looked at a consolidated order book there really is no difference between the 3 major exchanges - same liquidity, same spread, same order book. 

The media loves to scare the public into believing that short term trading algorithms are responsible for the volatility in the markets but this is simply false.  How can a scalping algorithm which turns around small amounts of stock for subpennies have anything to do with screwing the small investor?  If I were buying 500 shares of Intel for my IRA, I would pay a penny spread from a computer over a crook floor trader any day. 

Why doesnt anybody talk about dark pools where huge hidden liquidity is traded without any market participant knowing about it until well after it took place?  So much for transparent markets.  But transparent markets are bad for the big boys so they changed the rules.  By the way dont think for a second that there isnt one major investment bank or hedge fund who isnt involved in low latency algorithmic order execution.

BATS will be fine, bloated NYSE and NDAQ will continue to choke on their massive overhead, HFT will be blamed for everything and the sociopaths who run Wall Street and manipulate the media will continue to pull the strings. 

Fri, 03/23/2012 - 20:05 | 2285608 mendigo
mendigo's picture

He who lives by the sword...

High Tech: Shit that almost works.

Fri, 03/23/2012 - 21:07 | 2285713 smiler03
smiler03's picture


I think you have the most plausible explanation so far, by a considerable margin.

Sat, 03/24/2012 - 00:03 | 2285961 Nobody For President
Nobody For President's picture

Toto, I think we're back in Kansas again...

Sat, 03/24/2012 - 20:46 | 2287531 augie
augie's picture

jesus dude, nice post. 

Fri, 03/23/2012 - 19:03 | 2285443 Zero Govt
Zero Govt's picture

"..but were bailed out by a bidless HFT market once again) which just blew its own foot off."

chuckle :)

Fri, 03/23/2012 - 19:15 | 2285482 juggalo1
juggalo1's picture

How do you withdraw an IPO?  Aren't there underwriters responsible for overseeing the initial trading, and making sure the action is smooth?  What the hell do underwriters and lead underwriters do if they can't prevent clusterFs like this?

Fri, 03/23/2012 - 19:24 | 2285507 SantoDomingoMingo
SantoDomingoMingo's picture

Great point - Citigroup Inc, Morgan Stanley and Credit Suisse Group are the lead underwriters.  They have way more than enough firepower to stabilize a $100 million IPO.

Fri, 03/23/2012 - 19:20 | 2285492 SaveTheBales
SaveTheBales's picture

And the New Coke award for Worst Corporate Fail goes to.....

Fri, 03/23/2012 - 19:47 | 2285570 rosiescenario
rosiescenario's picture

Instead of a floor specialist occasionally front running a few clients once in awhile, now we have computerized systems that can front run the entire market and do it about 10,000 times a second.


Once we considered front running criminal now we refer to it as "providing liquidity".


That we call progress.


Of course today's debacle is one of the most ironic twists of fate ever HFT company getting shafted by algos....perhaps there is a God?

Sat, 03/24/2012 - 00:16 | 2285978 SantoDomingoMingo
SantoDomingoMingo's picture

You're missing the point.  BATS is an ecn, the same as Arca which is owned by NYSE and Island which is owned by Nasdaq.  Every exchange has cozy relationships with Wall Street.  The more volume you do and IPO's you list the more strip clubs you get taken out to.  NYSE and Nasdaq are clearly threatened by the BATS IPO and flexed some major muscle today.  In otherwords, the squid popped its eyeball up out of the water just long enough for us to see it before diving back into the safety of the dark depths.

Sat, 03/24/2012 - 00:04 | 2285963 palmereldritch
palmereldritch's picture


Sat, 03/24/2012 - 04:38 | 2286202 morning_glory
morning_glory's picture

Now I am wishing I had invested in some OPI

VelocityShares Daily Inverse IPO Short Term ETN
Sat, 03/24/2012 - 11:23 | 2286556 roadhazard
roadhazard's picture

I love watching this meat grinder.

Sat, 03/24/2012 - 19:17 | 2287365 JKahn526
JKahn526's picture

uh, more sellers than buyers?

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