I've been in this business 45 years and what occurred on the 6th was criminal behavior. Tens of thousands of traders and investors had their positions stolen from them with their use of protective stops. This was a failure of the exchange to keep an orderly market -- that is their primary responsibility. It is not to facilitate program trading. But the rules of the exchange have been changed to facilitate program trading which now is the majority of trades on the exchange. In fact one firm controls 50% of the NYSE volume. These programs manipulate the markets for very short term profits and should never be allowed. It is now a week later and the exchange says they don't know why the 1000 point decline occurred. I don't believe it. There are two things that could cause that to occur, the first is it was orchestrated by a few members or it was a failure of the exchange "rules" governing program trading. Neither of which they would ever admit too. But their failure to keep an orderly market, while allowing program trading to dominate the market should have them legally responsible to all the investors who had their positions stolen from them especially if those positions were taken as principle by NYSE member firms. And on that happy note-have a great week end. http://www.safehaven.com/article/16803/cnbc-squawkbox-europe-report
Comments