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> After trading was halted they set the cap at 20% loss for rolling back trades. FYI, NYSE rolled back transactions based on predetermined price rules. There

> After trading was halted they set the cap at 20% loss for rolling back trades. FYI, NYSE rolled back transactions based on predetermined price rules. There were no discretionary rollbacks associated with Knight's "big day". > The only people that came out of this ahead were aggressive algos on the other side Don't forget the other market makers; they took the other side of those Knight trades and made the spread every time Knight lost the spread.

donpdonp 13y ago
is there more information on what rollbacks did happen and what the price rules are?
- jzwinck 13y ago
  Search for "clearly erroneous" and the name of your favorite exchange. The policies are often spelled out fairly clearly, though most (all) will include an exchange discretion clause.