Yawn - Rule 48

Tyler Durden's picture

As predicted earlier, when we posted about the first market breakage, we said Rule 48 is just a formality. After all, the market is, gasp, down. Sure enough...

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johngaltfla's picture

No way? Is this a sign of the Spam aliens seizing control of our nation and markets?

I'm shocked to see this.






dwdollar's picture

I wonder what the average closing price ends up being on 'Rule 48' mornings.

Ancona's picture

So........this means no head shots?

Comay Mierda's picture

bullish for my puts

Theta_Burn's picture

Sure it's bullish....in 2-3 days after a meeting or 2, (un)official statement or 2, a short squeeze later, and WALA everything back to normal... rally on.

hedgeless_horseman's picture

I don't think they fully understand the meaning of the word, "mandatory."

fuu's picture

Just another manic Monday!

Transitory Disinflation's picture

For i in `selloff in Europe`



echo "From: messiah@bernankesbank.com"
 echo "To: everytradernotreadingZEROHEDGE@anaddress.com"
 echo "MIME-Version: 1.0"
 echo "Content-Type: multipart/mixed;"
 echo ' boundary="BOUNDARY"'
 echo "Subject: INVOKE RULE 48"
 echo ""
 echo "This is a MIME-encapsulated message"
 echo "--BOUNDARY"
 echo "Content-Type: text/plain"
 echo "blah blah balh"
 echo "This is what someone would see without an HTML capable mail client."
 echo ""
 echo "--BOUNDARY"
 echo "Content-Type: text/html"
 echo ""
UGrev's picture

Does it really work? When 48 pops up on a day like this (last I checked futures down -223), the market opens hardcore down anyway.. do traders find ways of working around this type of crap? it sure looks like they do to some extent. I'm not a trader, but I play one on the interwebz.. so go easy on me. 

monopoly's picture

I do feel a bounce off the lows this morning is coming. I do not care one way or the other but when sentiment is soo bearish, might get one...for a day. No shorts.

SheepDog-One's picture

Well as long as 'we're off the lows', all is well CNBC and the E-Trade baby told me so.

mikmid's picture

I see a triggered head and shoulders pattern on the dow this AM.

hedgeless_horseman's picture

If technicals were still viable 10,720 is the target, non?

rsnoble's picture

ho hum another day of our demise. lol.  it feels like i've been thru this before.  perhaps im a roman reincarnated.

rsnoble's picture

Of course you can only get screwed so many times before it seems like the norm.

PaperBear's picture

Who claims we have free markets ?

rsnoble's picture

They are free. If you're an elite you can do whatever you want with them.

DonBadajoz's picture

For how long is Rule48 envoked for?

El Gordo's picture

I'm invoking Rule #69, which states in part, "buy more PMs."

Bansters-in-my- feces's picture

Free and Fair markets ,at your service.......


Waffen's picture

~sigh~ so much popcorn wasted.

Tsunami Effect's picture

May 20, 2010, 10:22 AM ET Exactly What is ‘Rule 48?. WSJ

If you’re interested. Here’s the text of “Rule 48,” which the NYSE invoked to smooth the open today. Here’s the Cliffs Notes version:

(a) In the event that extremely high market volatility is likely to have a Floor-wide impact on the ability of [Designated Market Makers] 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)).

Dow Jones’ Kristina Peterson explained it pretty well in a story earlier this month. She writes that basically it means the designated market makers “will not have to disseminate price indications before the bell, making it easier and faster to open stocks. The rule was approved by the Securities and Exchange Commission on Dec. 6, 2007 and has been used rarely since then.”

so how many times has it been used since 2007????

Peter_Griffin's picture

Not sure since '07, but quoting the Chicago tribune for this year "Aug 8, 10 and 18, as well as on March 15, January 12 and January 27, Pellecchia said."  Also, September 6th, and now September 12th.  The great thing about using words like rarely is that it's totally subjective, like saying something without even saying anything.