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Is The SEC Telling Us Something? Schapiro To Cut Global Circuit Breaker Thresholds By 33%

Submitted by Tyler Durden on 09/27/2011 11:58 -0400

Remember the below chart which we are so fond of posting on Zero Hedge occasionally? Well, it will have to be redone very soon, because the SEC has just submitted a proposal for public comment to cut market-wide circuit breakers in half from the current thresholds of 10%, 20% and 30%, by 33%. And if the SEC is actually proactively looking at something such as marketwide circuit breakers, a glaring admission that vol is about to surge, but not quite enough to actually trigger the 30% market collapse needed for a full day market halt, then all hell must be about to break loose.

As a reminder this is how the global circuit breaker looks like right now:

And this is what the SEC is now proposing:

The proposals would revise the existing market-wide circuit breakers by:

Reducing the market decline percentage thresholds necessary to
trigger a circuit breaker from 10, 20, and 30 percent to 7, 13, and 20
percent from the prior day’s closing price.
Shortening the duration of the resulting trading halts that do not
close the market for the day from 30, 60, or 120 minutes to 15 minutes.
Simplifying the structure of the circuit breakers so that rather
than six there are only two relevant trigger time periods — those that
occur before 3:25 p.m. and those that occur on or after 3:25 p.m.
Using the broader S&P 500 Index as the pricing reference to
measure a market decline, rather than the Dow Jones Industrial Average.
Providing that the trigger thresholds are to be recalculated daily rather than quarterly.

Be afraid. Be very afraid. Especially after 3:25 pm.

- advertisements -

Tue, 09/27/2011 - 12:00 | 1715080 GeneMarchbanks

Nobody leaves!!!

Tue, 09/27/2011 - 12:02 | 1715092 TheLooza

Nobody move nobody get hurt.

Tue, 09/27/2011 - 12:04 | 1715101 doomandbloom

Remain Calm!

Tue, 09/27/2011 - 12:07 | 1715118 Long-John-Silver

Only if you're giving away drugs.

Tue, 09/27/2011 - 12:19 | 1715160 New American Re...

Hey Tyler, I don't want to suggest that ZeroHedge censor comments, but if you could just put nonsense bullshit comments of people only wanting to see themselves in print, instead of providing an informative view to a page labeled 'Bull Shit Rants", people might read these things more often and actually contribute something of value.

Tue, 09/27/2011 - 12:24 | 1715180 SheepDog-One

You mean you want Tyler to censor posts such as yours then?

Tue, 09/27/2011 - 12:47 | 1715283 redpill

When this EFSF charade finally comes to an end, no one will be worried about whether there are spammy comments, I can tell you that.

Tue, 09/27/2011 - 13:02 | 1715321 Bananamerican

NAR, fer crissake, you just ranted against ranters....

Tue, 09/27/2011 - 22:07 | 1717156 mcguire

save a pretzel for the gas jets

http://www.youtube.com/watch?v=BhDhDRvHaGs&feature=share

Tue, 09/27/2011 - 12:27 | 1715195 tekhneek

We'll start with yours by down voting it to death.

Tue, 09/27/2011 - 12:31 | 1715206 TheLooza

The only value I can possibly hope to add is a funny comment. Just a one liner, no big deal. Scroll past it if it offends your sensibilities. All that is left to do for this shit show is watch and laugh anyways.

And who the fuck are you?

Tue, 09/27/2011 - 22:11 | 1717168 mcguire

me? i like turtles..

Tue, 09/27/2011 - 12:32 | 1715214 Smiddywesson

But...but...senseless bullshit comments are all I have left.

Will I still exist when I'm censored by The Man?

Tue, 09/27/2011 - 12:35 | 1715224 fuu

I look forward to reading all the erudite replies your nonsense post generates.

Tue, 09/27/2011 - 12:41 | 1715252 ReallySparky

I guess we are safe and uncensored until he runs the place. As a long time reader, I can attest to the fact that it kinda hurts when one of your posts gets flamed by a drive by angry troll. Kinda wants to make you hold your thoughts. How many junks until your post gets deleted anyways?

Tue, 09/27/2011 - 12:48 | 1715286 fuu

I do not think the down arrows remove a post like junking used to. A couple people have been over 150 red arrows and the post stays. I think part of the change was to avoid the censorship accusations even if the censoring comes from the community.

Tue, 09/27/2011 - 12:57 | 1715308 The Big Ching-aso

ZH outta hire Denninger to police the joint with an iron fist. Wait, maybe this is him. Oops, no it can't be comments don't mention gold or silver.

Tue, 09/27/2011 - 13:29 | 1715406 GetZeeGold

It wouldn't be Karl without a little potty mouth.

Tue, 09/27/2011 - 12:44 | 1715273 Rich V

Don't mind me, I'm just here for the drama

Tue, 09/27/2011 - 12:56 | 1715302 piceridu

“He that would make his own liberty secure, must guard even his enemy from oppression.”

Thomas Paine

Tue, 09/27/2011 - 13:59 | 1715529 Fukushima Sam

Look, I'm in print! On the interwebs! I'm fucking famous!

Tue, 09/27/2011 - 14:39 | 1715707 hooligan2009

heh...you are postively raining solyndra drops of uv radiation today!

Tue, 09/27/2011 - 14:04 | 1715549 GenX Investor

So...if we understand you correctly, it is the bloggers that cause market anxiety? However, if you want to disseminate truthiness to the world, you need only break into a CNBC broadcast (mid-market) with a RED "NEWS ALERT" and proceed to proclaim to people that, accoring to SOURCES, that Europa is about to provide a “Raptor” like structure to its EUR400M capital base to bring the whole thing “off balance sheet” (as if that is possible for 17 semi-independent countries to do...at all) or to potentially ring fire the contagion, so not to worry, green light back on for longs? You ask what the Value is? The Value is to pierce the thinly veiled cow towing and inherent dishonesty that is prevalent in the greedy wall streeters who have donated handsomely to the political overseeing rulers who themselves are only interested in preserving their perceived legacy. ZH sir, is doing God's work and the non-believers on Wall Street shall soon be turned to SALT.

Tue, 09/27/2011 - 14:13 | 1715600 Shirley Wilfahrt

You just made the -100 Club Bitch.....stuff that in your pipe and suck on it ....

Tue, 09/27/2011 - 14:43 | 1715727 TheLooza

NOW TITS or GET THE FUCK OUT.

know what i'm sayin/

Tue, 09/27/2011 - 14:41 | 1715721 A Nanny Moose

That has to be the most down arrows I have seen on any one comment yet.

Good work.

Tue, 09/27/2011 - 15:03 | 1715815 Mr. Sheeple

I haven't even bothered to log in, in months. But your little rant deserves maximum squeeze.

You mad, bro?

Tue, 09/27/2011 - 19:26 | 1716713 TheFourthStooge-ing

Quoth New American Retardation:

Hey Tyler, I don't want to suggest that ZeroHedge censor comments, but if you could just put nonsense bullshit comments of people only wanting to see themselves in print, instead of providing an informative view to a page labeled 'Bull Shit Rants", people might read these things more often and actually contribute something of value.

fingerfuck (spray painted upside down with orange day-glo paint in 18-inch letters on a landmark that you pass by every day)

Tue, 09/27/2011 - 20:18 | 1716849 Robslob

New American Retard...Welcome to your 28th week at ZH...wow, I bet you have been waiting 27 weeks just to post something as stupid as you did...but none the less...Welcome

(Shill)

Tue, 09/27/2011 - 21:28 | 1717051 BlackholeDivestment

...did some asshole just call for a ''New'' Order? Lol. Good one ''New'' ...dare it be repeated Americant. Lol http://www.youtube.com/watch?v=2WgI02-7sbI

Tue, 09/27/2011 - 22:12 | 1717171 Prometheus418

I only gave you a red arrow because I wanted to see how deep we could get that counter in the red- don't actually give a shit what you think about the snarky one-liners.

Wed, 09/28/2011 - 00:12 | 1717385 ceilidh_trail

Yes! -150! ding ding ding!

Tue, 09/27/2011 - 12:09 | 1715107 GeneMarchbanks

So we're cutting your 'time-outs' got it? Just keep playing the game and you can't lose...

... no more tapping out for a breather, Mmmkay?

Tue, 09/27/2011 - 12:35 | 1715225 Nascent_Variable

15 minutes is long enough for Jim Kramer to shout BTFD 572 times.

Tue, 09/27/2011 - 12:06 | 1715112 Long-John-Silver

What about the wounded trashing about on the floor?

Tue, 09/27/2011 - 12:09 | 1715121 fuu

Just nudge them over to the sidelines where all the money is.

Tue, 09/27/2011 - 12:26 | 1715147 TruthInSunshine

“The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution). There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit — which might be politically legitimate and desirable — then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people.”

--Chief Justice of the German Federal Constititional Court

9/27/2011

_{^{*Sixteen judges make up the Federal Constitutional Court, Germany's highest and most important judicial body. They are selected to serve twelve-year, non-renewable terms and can only be removed from office for abuse of their position and then only by a motion of the court itself.}}

09-27 11:47: Germany's Roesler says leveraging EFSF is "off the table"

Tue, 09/27/2011 - 12:38 | 1715233 Sock Puppet

“The sovereignty of the German state is inviolate and anchored in perpetuity by basic law."

I think US used to be like this didn't it?

I be surprised if Germany can adhere. Will we see.

Tue, 09/27/2011 - 12:44 | 1715255 TruthInSunshine

Here is the link to the UK Telegraph Article (written by Ambrose Evans-Pritchard) for the above quote and cite to the Chief Judge of the German Federal Constitutional Court (with date of quote corrected; it was made on 9/26/2011, and not 9/27).

German turmoil over EU bail-outs as top judge calls for referendum

Germany's top judge has issued a blunt warning that no further fiscal powers may be surrendered to Europe without a new [German] constitution and a popular referendum, vastly complicating plans to boost the EU's rescue machinery to €2 trillion (£1.7 trillion).

“The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution). There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit — which might be politically legitimate and desirable — then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people.”

--Andreas Vosskuhle, Chief Justice of the German Federal Constititional Court

9/26/2011

Tue, 09/27/2011 - 12:46 | 1715277 Sock Puppet

I believe he said this. I just doubt it means any thing in this day and age.

Tue, 09/27/2011 - 12:58 | 1715304 TruthInSunshine

It means something as long as one believes that when the chief judge of Germany's highest court says it, in an opinion issued by that same highest court (all 16 judges), then in order to follow through with expanding ESFS, let alone leveraging it in some totally irrational, suicidal way, nothing short of amending the German Constitution will be required, and that this will necessitate a referendum vote by the general public.

Tue, 09/27/2011 - 15:18 | 1715874 citta vritti

and a quick check w/ Deutsche Bank and others - you guys good to go with this? well, then, okay.

Tue, 09/27/2011 - 12:09 | 1715126 Cpl Hicks

Give them a sound thrashing until they quiet down.

Tue, 09/27/2011 - 13:42 | 1715461 Absalon

The purpose of the time out is to allow brokers to make margin calls and shoot the wounded. You did not think it was to help investors did you?

Tue, 09/27/2011 - 12:06 | 1715115 Spirit Of Truth

Remain calm....all is well!

http://www.youtube.com/watch?v=zDAmPIq29ro

Tue, 09/27/2011 - 12:06 | 1715111 Translational Lift

So....does this apply to up-tics as well as down-tics??

Tue, 09/27/2011 - 12:44 | 1715269 camaro68ss

Lets srink the door so less people can run out of the room at once. lol hahaha

Tue, 09/27/2011 - 13:11 | 1715341 Bananamerican

confidence inspiring isn't it?

"Welcome to Happy Fun Land. The gates behind you will be bolted shut for your comfort and security. Now, enjoy yourselves"

Tue, 09/27/2011 - 13:16 | 1715371 covert

the sec is clueless. doubt it, look @ warren buffet. insider trading & manipulation is illegal, yet?

http://expose2.wordpress.com

Tue, 09/27/2011 - 12:00 | 1715083 qussl3

Tim Cook will be one pissy panda when Greece upstages the icrack.

Tue, 09/27/2011 - 12:00 | 1715085 NotApplicable

That's such a hilarious chart. The red shading is completely incoherent, conveying nothing.

Tue, 09/27/2011 - 12:06 | 1715117 GeneMarchbanks

Red is bad. Something bad. You stop on red, red is scary...

Tue, 09/27/2011 - 12:11 | 1715134 SheepDog-One

'The red shading is completely incoherent, conveying nothing'

Yea it conveys at what time they close the markets if a certain drop % happens and for how long.

Tue, 09/27/2011 - 12:38 | 1715236 Smiddywesson

They are getting ready for limit down in stocks.

Limit down, limit down! Only the HFT algos can get out of the market in the microseconds that it trades before freezing up. Enjoy the feeling of watching your account waste away, for days on end, powerless to close your position.

But...but...I had a STOP! LOL, you had a stop. So sorry Charlie.

Go ahead and time this market. I dare ya.

Tue, 09/27/2011 - 12:01 | 1715086 LawsofPhysics

We must be winning since our masters want to change the rules again. Thanks Tyler!

Tue, 09/27/2011 - 12:42 | 1715261 kridkrid

Perhaps we should teach WOPR how to play Tic-Tac-Toe. How about a nice game of chess?

Tue, 09/27/2011 - 12:01 | 1715087 Racer

Selling is no longer permitted

Tue, 09/27/2011 - 12:49 | 1715289 hondamikesd

Now don't be silly. Selling at a lower price however...

Tue, 09/27/2011 - 12:02 | 1715091 Syrin

Wow, just wow.

Tue, 09/27/2011 - 12:02 | 1715093 pods

Why don't they just make a rule that the markets cannot go down?

The do it with spending, why not the market?

pods

Tue, 09/27/2011 - 12:04 | 1715099 Racer

Very strange.. but why not deal with the real problems instead?

Tue, 09/27/2011 - 12:04 | 1715100 Tsar Pointless

Goddamn it Tyler, how do expect the children disguised as adults in this country to enjoy their bread and circuses when you constantly throw this stuff in their faces?

I mean, c'mon! Have you no shame, sir?!?

The mood is quite festive here in Pittsburgh. The little boys and (mostly) girls are dressed in their Sunday Best - i.e. Pittsburgh sports team apparel - and have not the time for such trivial matters. There is a free company party goin' on up in here today, replete with all of the crap little children love.

Amerikkka - where the average age of alll adults is 12.

Tue, 09/27/2011 - 12:09 | 1715122 pods

My favorite thing to say to grown men wearing jerseys:

"How does it feel to have another man's name on your back?"

pods

Tue, 09/27/2011 - 12:20 | 1715164 SheepDog-One

Not only do the doofuses like wearing their silly sports jerseys with another mans name on it, they also enjoy Bernank and Geithners and Obamas dicks in their ass!

Tue, 09/27/2011 - 12:26 | 1715189 SheepDog-One

1 official sports jersey fan did not like.

Tue, 09/27/2011 - 12:42 | 1715260 Smiddywesson

HA, good one

And they are doing their wives, who have to truck off to work every morning just to keep the house afloat.

Tue, 09/27/2011 - 12:55 | 1715301 Tsar Pointless

The funniest part of it all, is that these so-called straight red-blooded males seem to need their women to wear the same sports clothing as they do.

I wonder: Do they make their female partner keep the jerseys on when they're doing the deed, so instead of porking the hideous creature underneath/in front/on top of them, they're actually screwing Ben Roethlisberger or Sidney Crosby?

Tue, 09/27/2011 - 12:26 | 1715191 DoChenRollingBearing

EXCELLENT, pods! Though some of those guys might get, what, a little pissy about that...

Tue, 09/27/2011 - 14:27 | 1715662 s2man

Sports or brand names, I like to ask, "Do they pay you to wear their advertising? What?! You mean you paid them?!"

Disclosure: I will wear advertising if they give it to me for free.

Tue, 09/27/2011 - 14:16 | 1715620 Shirley Wilfahrt

Everyone loves a circus!!

Tue, 09/27/2011 - 12:06 | 1715103 eri

Markets shall be liberated like Iraq is or else

Tue, 09/27/2011 - 12:23 | 1715179 tekhneek

We're gonna free the shit out of you, market!

http://www.myconfinedspace.com/wp-content/uploads/2006/10/free-logo.gif

Tue, 09/27/2011 - 13:43 | 1715467 clones2

LMAO! Nice one...

Tue, 09/27/2011 - 12:04 | 1715104 Trillax

When you can't meet the goal, move the goalpost.

Crazy.

Tue, 09/27/2011 - 12:13 | 1715137 GeneMarchbanks

Calvin-ball.

http://en.wikipedia.org/wiki/Calvin_ball#Calvinball

Tue, 09/27/2011 - 12:30 | 1715204 espirit

+1 At least Calvin-ball had one rule. Wear masks.

Tue, 09/27/2011 - 13:16 | 1715372 Andy_Jackson_Jihad

So did the orgy cult in eyes wide shut......which is a more apt metaphor for what is about to happen.

Tue, 09/27/2011 - 12:21 | 1715167 tekhneek

Next up: No short selling... after that? Owning gold and silver is illegal.

After that... price controls... and after that? Confiscation.

Tue, 09/27/2011 - 12:28 | 1715200 LawsofPhysics

Ah err, confiscation of what? Nothing to see here.

Tue, 09/27/2011 - 12:28 | 1715201 DoChenRollingBearing

Green for good observations!

Old business: I liked your picture of the 7.62 x 39 Wolf ammo picture last night. Nice!

Tue, 09/27/2011 - 12:40 | 1715249 tekhneek

Ha thanks man! Good ammunition. I actually bought a box of 500 TulAmmo, and I actually like it better I think. Not sure yet.

I actually just ordered a lot of gear for my new M70AB2 Yugo... it should be here tomorrow. I'll post a pic on the sticky (greyed) thread of the morning.

Tue, 09/27/2011 - 12:59 | 1715316 Lednbrass

It seems to be slightly cleaner then Wolf and Ulyanovsk after a day at the range, recently bought a case of it myself.

The only thing I dont like about my underfolder (Polish) is shooting on a cold winter day.

Tue, 09/27/2011 - 14:27 | 1715666 Uncle Remus

MFS 2000 7.62x39. Brass casing, FMJ, Boxer primed. Just about perfect in a mini-30. Unlike a mini-14, which, in my experience, eats just about anything you feed it, including lacquered/polymered steel cases.

Tue, 09/27/2011 - 14:05 | 1715566 the grateful un...

no selling period! as Bob Prechter notes, that in times of real stress markets can pay their bond holders, (and share holders) in like. That is if Apple goes bust, they can send you a shipping container filled with Ipads or pods or whatever to settle their obligation. This presumes I guess that shares would be halted before everyone could get their money out (think about that for a moment) and then settled in like when there was no interest in buying shares for an extended period.

Tue, 09/27/2011 - 14:01 | 1715541 the grateful un...

have this picture in my head of Bernanke hanging a banner covering the electronic board at the NYSE (after a crash no doubt) and the banner says DOW 36000 (I decree on this day)

Tue, 09/27/2011 - 12:07 | 1715105 SheepDog-One

Decreasing the rated capacity of the Titanics lifeboats? Uh oh.

But until the stern is fully submerged, obviously all is well. Im reading posts from people who think their great-grandkids might experience some trouble, but their kids and grand kids will certainly be OK...LOL probably only a matter of hours until they shut the power off nation wide in reality.

Ever watch 'The Walking Dead'? Probably real close to reality, before Christmas.

Tue, 09/27/2011 - 12:05 | 1715109 moldygoat

seems bullish!

Tue, 09/27/2011 - 12:09 | 1715120 Thomas Jefferson

Is someone on the titanic drilling holes in the lifeboats?

Tue, 09/27/2011 - 12:13 | 1715143 SheepDog-One

Theyre making damn sure no one is able to get off this sinking ship.

Tue, 09/27/2011 - 12:29 | 1715202 DoChenRollingBearing

Peru looks better every day, but I would sure would miss a lot about America...

Tue, 09/27/2011 - 12:57 | 1715307 DosZap

DoChen,

Bro, you do not have a clue how BLESSED you are to have a place to retreat to.

Anytime you want.

Yeah, I would miss some things also.Sad part, those things are rapidly being lost, and taken away.

Just do me me a favor, make sure you get OUT before you can't.

Tue, 09/27/2011 - 14:14 | 1715610 DoChenRollingBearing

DosZap, thanks for the nice words! Yes, I do have a place to run and hide, as well as work (perhaps you read about Ameru Trading del Peru S.A. at my blog?)! But, Peru is a place with a LOT of problems and drawbacks. Still, it is an option that my wife would probably be OK with (Peruvian-AMERICAN!). And, YES, it is a blessing, one of many in my life...

I also want to wait and see what Chavez-clone Ollanta Humala cooks up. It probably will NOT be a yummy Lomo Saltado, LOL...

YOU, however, are almost in another country! Texas, it's like a whole 'nother country (advertising jingle I heard while living there a LONG TIME ago).

Tue, 09/27/2011 - 12:50 | 1715287 Smiddywesson

They are locking the passengers in steerage and ensuring that only the algos and can get out.

If markets repeatedly lock down in mere seconds, you will forceably be left holding the bag. The smaller the circuit breakers, the more the public gets screwed.

This time really is different. This time, the big guys get out by force, not by guile.

Tue, 09/27/2011 - 12:09 | 1715125 Careless Whisper

new rules will benefit the professional traders (i.e. the boxes) because after a halt the stock usually opens at an exagerated point on the downside due to the accumulated sell oreders. of course a professional trader knows this is the time to buy, looking for a short pop up. those short pops can translate in to millions.

Tue, 09/27/2011 - 12:09 | 1715128 Gandalf6900

no shorting and no leaving....hotel california

Tue, 09/27/2011 - 12:10 | 1715129 Belarus

When the markets go up and down 2-4% every other day you it has ALWAYS guaranteed the shit is going to hit the fan soon....these are pure sucker rallys fabricated by Wall Street to sel into strength before the end of the quarter, nothing more nothing less.

Next week, after everyone's afraid to go short again and have covered their burned asses, the market will tank.

Tue, 09/27/2011 - 12:15 | 1715150 SheepDog-One

Almost to the T, Hal Lindsay said at the start of the year that when you see wild swings in the markets of 3% or more daily and PM's taking 50% hit in a few days, then the big rug pullout is about to happen.

Tue, 09/27/2011 - 12:10 | 1715130 Edward Fiatski

Any crash will be stretched to a week, if not more - 24/7 on the wires, thus giving the Fed excuse for QE3^n.

Tue, 09/27/2011 - 12:12 | 1715136 pods

And of course Libya has lost 20k "heat seeking" missiles. Here comes Al-CIA-Duh.

What action related to missing missiles and market crashes might explain both of them?

<cough- False Flag- cough>

pods

Tue, 09/27/2011 - 13:01 | 1715319 JuicedGamma

Source please? Who provided them?

Tue, 09/27/2011 - 13:12 | 1715352 pods

http://www.nytimes.com/2011/09/08/world/africa/08missile.html?pagewanted=all

I guess they were in unsecured warehouses. My thought is the story is a cover piece. Lots of the usual propaganda in the piece from what I had the stomach to glance over (not much).

Heard it as a news blip on the radio this morning. (the 20k number was from the radio report)

pods

Tue, 09/27/2011 - 13:32 | 1715412 mick_richfield

The missiles are heat-seaking.

But we are cool.

Tue, 09/27/2011 - 12:14 | 1715138 Archimedes

Just because you halt the market at a lower level does not mean stocks won't continue to go down after the market re-opens. This just helps those in levered ETF's make more money.

Tue, 09/27/2011 - 12:14 | 1715144 ArkansasAngie

I think it's the time that at issue not the percentages. If you tell me the market closed for more than 15 minutes people watching the MSM news might get scaried.

Traders? Heck it's only the TBTFs playing with TPTB's confiscated people's money in the market anyway. No one else is in this market.

Tue, 09/27/2011 - 12:14 | 1715145 New American Re...

Holy SHIT!!! So what the SEC is proposing, is an equity markets equivilant of a commodities 'LIMIT DOWN', leaving the poor sod on the wrong side of the market with no place to go, locked into his losses and unable to get out. That, or they are aware of a growing danger of HFT's going parabolic in their fat finger trading scheme's and are trying to reduce their cancer instead of just cutting the muther'fuckers out of trading all together. WTF!!! I guess they don't care the sword is double edged, because even a moron can see that this cuts both ways.

Tue, 09/27/2011 - 12:17 | 1715157 SheepDog-One

Yes, and its EASY! All it takes is the DOW to be up +200 and everyone is back into 'complacent Hindu bull' mode.

Tue, 09/27/2011 - 13:38 | 1715448 fuu

Even the "ZH is nothing but bears missing out on making money" guys are back in full force this week.

Tue, 09/27/2011 - 22:27 | 1717208 Prometheus418

Boy, I sure do wish I had listened to those guys... the portion of my 401k that I was not able to withdraw only lost 6.8% this year. Instead, I just have these worthless barbarous relics that I can't even eat.

Tue, 09/27/2011 - 12:32 | 1715211 SilverRhino

And the shitty part. A one penny trade cost (no matter the value) would cut this SHIT OUT.

Tue, 09/27/2011 - 12:36 | 1715227 SheepDog-One

A CAPTCHA on all market trades would cut all this shit out too. Lots of simple things COULD be done to immedately cut out all this crap, but thats not how they want it.

Tue, 09/27/2011 - 12:54 | 1715296 Smiddywesson

Well that's surely a possibility. A panic ensures and the market goes limit down, repeatedly. The only beneficiaries of this rule change are the Boyz.

Tue, 09/27/2011 - 12:16 | 1715152 mikmid

Why don't we just give them all our money up front and save all this screwing around.

Tue, 09/27/2011 - 14:30 | 1715671 hooligan2009

you already have and just dont know it..the trick is to get it back without them noticing...sort of like tying a string to your krugerrands and giving it a tug when they walk off with them

Tue, 09/27/2011 - 12:16 | 1715154 Bold Eagle

Thank you, SEC. Of all the things that are wrong with this market, circuit breakers are surely the most important. One question though, aren't circuit breakers suppose to protect from sudden surges instead of drops?

Tue, 09/27/2011 - 12:19 | 1715159 JuicedGamma

This is awesome, bring it on bitch(es).

Tue, 09/27/2011 - 12:18 | 1715161 LongSoupLine

What scared me (before even looking at the data) were the words "SEC proposal".

Tue, 09/27/2011 - 12:21 | 1715165 Gringo Viejo

Truth be told, I'm amazed that they've propped this corpse up as long as they have. I grudgingly admire the turds.

Tue, 09/27/2011 - 12:22 | 1715168 PulauHantu29

Please explain...I don't understand....

....I went to public school.

Tue, 09/27/2011 - 12:27 | 1715197 Bold Eagle

Expect more than 30% drop in Q4.

Tue, 09/27/2011 - 12:32 | 1715212 SheepDog-One

Yes but in the meantime, DOW up 2%-3% daily apparently.

Tue, 09/27/2011 - 12:23 | 1715175 buzzsaw99

The PPT only needs 15 minutes to turn on the "buy" program these days. Obvious.

Tue, 09/27/2011 - 12:31 | 1715208 monopoly

Might be a little early but starting to put on a couple of shorts here. First time in months. Those new circuit breakers need to be tested to make sure they work.

Gold, silver, miners tough as miners hit day lows. The one asset with superior earnings is being sold. Who ever said markets are rational. NO one here.

Tue, 09/27/2011 - 12:34 | 1715220 SheepDog-One

Well RoboTrader says markets are rational, but then again he's a robot.

Tue, 09/27/2011 - 12:34 | 1715223 centerline

Maybe part of something more sinister. But, I think it is just more evidence that no one really knows what to do. No one (except a select few) knows what is coming. So they are just pissing into the wind. Trying to tighten the breakers thinking that it will translate to reduced volatility - and that reduced volatility will instill a feeling of "safer" markets. LOL.

Tue, 09/27/2011 - 12:35 | 1715226 monopoly

Exactly, and do you notice how few posts we have from him today. Gold must be higher then.

Tue, 09/27/2011 - 12:36 | 1715229 monopoly

AAPL always a tell for me.

Tue, 09/27/2011 - 12:37 | 1715234 f16hoser

"All is Well!"

Tue, 09/27/2011 - 12:40 | 1715247 Sock Puppet

The SEC is corrupted beyond measure. A billion dollars a year to shred investigative reports and to be used for political retaliation against S&P.

Tue, 09/27/2011 - 12:48 | 1715248 bigdumbnugly

so the question nobody has asked is how long would it be before such a rule change could be implemented after it's decided that's where they're going with it? (after the 21 day public comment period and all else).

and how long the process?

Wed, 09/28/2011 - 00:11 | 1717382 swissbene

maybe soon -- a small bit of info from sec.gov

Rule Proposal. When approved by the Commission, a rule proposal is published for public notice and comment for a specified period of time, typically between 30 and 60 days. A rule proposal typically contains the text of the proposed new or amended rule along with a discussion of the issue or problem the proposal is designed to address. The public’s input on the proposal is considered as a final rule is drafted.

Rule Adoption. When approved by the Commission, the new rule or rule amendment becomes part of the official rules that govern the securities industry. The adopting release reflects the Commission’s consideration of the public comments. Many rules are effective immediately, but some have a delayed effective date. In either case, the date by which the public must come into compliance with a new or amended rule (the Compliance Date) may be delayed or phased in to ensure the transition is a smooth one.

http://www.sec.gov/answers/rulemaking.htm

Tue, 09/27/2011 - 12:41 | 1715257 sabra1

what about those HFT's that prod into the future? am sure that was a test, a real big test!

Tue, 09/27/2011 - 12:46 | 1715278 Mad Max

MAKE READY THE FLASH-SMASH!

Tue, 09/27/2011 - 12:55 | 1715299 ivars

New oil (Brent Crude 1M) price prediction 2011-2013:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...

Tue, 09/27/2011 - 13:03 | 1715322 WoodMizer

Increasing the sensitivity of smoke ditectors on the Hindenberg.

Tue, 09/27/2011 - 13:29 | 1715408 JW n FL

Watch Max bury this idiot.. NOT!!!

Jamie Demon, JP Morgue..

who can use any excuse he wants.. but NO! Capital Requirements are NO! Capital Requirements!!

I can say that I want no capital requirements because my puppies dont like it.. it doesn't matter what the excuse is.

The people who make excuses for these scumbags on Wall Street are JUST as Harmful to mankind as the psycho's who are running the Tax Titty Scams!

Providing cover for JP Morgan.. Publicly (which is ALL Goldman Sach's is alive to do, be a shield for JP Morgan!) confuses the the ignorant sheepish consumers more than anything else.

Why would some broke lil college kid say nice things about people on wall street? I dont know? maybe he wants into the club? maybe he wants recognition to make the jump into conventional TV media? to prove that he can be trusted with the interests of Wall Street Bankers?

"Joe Weisenthal of Business Insider" is a threat to America, he is guilty of Treason and he should be on someone's list up in New York! along with his Daddy Jamie Demon of JP Morgue!

http://www.youtube.com/watch?v=F-uTK3saTm4

Tue, 09/27/2011 - 13:37 | 1715444 bugs_

Preparing for The Greek Default - and the "me too!" countries that will line up shortly afterwards.

Will they let it happen in October? I hear that October is a bad month for stocks :-)

Tue, 09/27/2011 - 13:49 | 1715491 mind_imminst

There is an implicit assumption in this article that the SEC knows what it is doing. Not a guarantee. Maybe they are just flailing bureaucrats.

Tue, 09/27/2011 - 13:51 | 1715502 Iminimout

I love the little clues you pick up Tylor!!!! Newbee here...I really enjoy reading your articles and reading the blogs. I have learned a lot about the markets , corruption in the markets and goverment.

Tue, 09/27/2011 - 14:19 | 1715631 DoChenRollingBearing

Welcome! Lots here. Do not mind trolls and being junked. Have a green on me!

Tue, 09/27/2011 - 13:58 | 1715525 the grateful un...

makes perfect sense. when the Algos go crazy you want to shut down the market as soon as possible, and then CANCEL all the trades. the only thing I dont' understand is where are the breakers set for parabolic RISES. well the shorts must know this is Asymmetric Warfare, always has been. Not that the Algos are the Bears friend, its a bit like a uptick rule, which the ETFs effectively circumvented. Whatever happened to stock futures?

Tue, 09/27/2011 - 14:01 | 1715538 The Big Ching-aso

They're ramping up for this Christmas season where retail earnings will blow out all expectations due to the incredible rebound in consumer spending at .99 Stores hence getting a handle now on upcoming misguided short volatility. For example, I just heard a rumor that .99 Stores is ready to announce a lay-a-way plan anytime now.

Next move will be limits to halt markets when it goes up too much in one day.

Tue, 09/27/2011 - 14:11 | 1715593 geminiRX

Combine this rule change with the illegimate margin hikes in precious metals when they were crashing a few days ago and the story becomes very clear. Whether you believe the margin hike caused the pm's to crash or they hiked margins to pummel gold into the ground during a moment of weakness is another story...

Tue, 09/27/2011 - 14:27 | 1715664 Sow-puncher

illiquidity, bitchez?!?

Tue, 09/27/2011 - 15:28 | 1715903 Bansters-in-my-...

Hey,New American Revolution...

Don't let the door hit you on the way out.

Fucking Idiot.

Tue, 09/27/2011 - 16:42 | 1716204 Withdrawn Sanction

Never underestimate the stupidity of lawyers (which is what works/surfs at the SEC). Good grief, by all means lets lock the door to a burning building. Doing so only serves to increase panic at the first whiff of smoke.

If the first assumption is incorrect (that SEC lawyers are a dim bunch), then this is a deliberate attempt to build more fragility and volatility into the system under the guise of safeguarding it. Gads.

Tue, 09/27/2011 - 19:28 | 1716719 HD

What is it goes UP 7%?

Tue, 09/27/2011 - 20:31 | 1716895 Buck Johnson

This is something to truly be worried about. They don't do this unless they know that major negative volume is about to happen. This is being done so that you don't see a down day of 3400 points and think the sky is falling (which it is). They want to be able to stop it for the new 15 minutes and then have the US and everybody else to buy in order to make it look like everything isn't as bad as it looks. We are going down hard.

Wed, 09/28/2011 - 14:20 | 1719131 johnjb32

This is simple to understand and an easy read. Everyone needs to understand how clearly the writing is on the wall that a major crash is looming. This is like fully seeing how thoroughly the USG was preparing for plane into building events in the weeks prior to 9-11. -- Michael C. Ruppert

http://www.collapsenet.com/154.html

Is The SEC Telling Us Something? Schapiro To Cut Global Circuit Breaker Thresholds By 33%

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