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Why? Because the trade was "unfair?" I wonder what legal grounds they would have to break that trade.
by jluxenberg 16y ago
Why? Because the trade was "unfair?" I wonder what legal grounds they would have to break that trade.
- cschneid 16y agoExchanges define rules, it's not a free for all. http://nyserules.nyse.com/nyse/ http://nyserules.nyse.com/nyse/
- yummyfajitas 16y agoFirst off, shares have not yet changed hands. The two parties to the trade each have an agreement with clearing houses that the shares will change hands in the next 3 days, modulo various clauses. One of the clauses lets the exchange break trades under certain circumstances, typically in the case of obvious errors and "unusual circumstances". So it's fairly likely that trades above and below a certain price on some stocks will be broken. See Rule 11890 (c) (2) of the NASDAQ. http://nasdaq.cchwallstreet.com/nasdaqtools/platformviewer.asp?selectednode=chp_1_1_5_4_8_12&manual=/nasdaq/main/nasdaq-equityrules/ http://nasdaq.cchwallstreet.com/nasdaqtools/platformviewer.a... [edit: I previously attributed the NASDAQ rule to NYSE.]
- bwhite 16y agoThis is happening. Nasdaq is breaking trades that occurred between 14:40 and 15:00 which executed at more than 60% away from the previous (consolidated) print price.