Perry Glasser

Greifeld Makes World Safe for Computers!

In Business, Economics, Economy, Finance, Personal Finance, Wall Street on June 5, 2010 at 10:18 am

Chutzpah Award Winner

In today’s Wall Street Journal, Bob Greifeld, CEO of NASDAQ and Wizard Extraordinaire, Oak Leaf Cluster, writes of the new measures to prevent another Flash Crash.

Greifled assures us, “markets work when a willing buyer and a willing seller come together to determine a fair price. Markets only work when they are continuous and performing. Any intervention must be based on the principles of transparency, fairness, objectivity and sound regulation. …  Our shared objective is to help ensure that investors and listed companies feel confident in the integrity of the prices generated by their equity markets.”

Sounds good, don’t it?

But who are these “investors?” If you ever had any doubt that the mission of the markets was to make the world safe for Buccaneers and Big Money, check out the details. Griefled writes:

  • The triggering price for each Nasdaq-listed security is the price of any execution by Nasdaq in that security within the prior 30 seconds.
  • …the Nasdaq Volatility Guard will trigger a 60-second pause in trading on Nasdaq in the affected security. During the trading pause, Nasdaq will maintain all current quotes and orders and will continue to accept quotes and orders in the security, as well as disseminate an electronic Order Imbalance Indicator every five seconds showing the number of shares and the prices of the shares on the buy and sell side as they converge to a price to open a stock. At the conclusion of the 60-second pause, the security will be re-opened with an auction.

Greifeld concludes, “While no market can guard you from uncertainty, Nasdaq is committed to protecting you from excessive volatility.”

To whom, one can only  wonder, does you refer?  Why, all of us who can respond in 30 seconds. Investors means the 66 percent of all trades done computer-to computer-at light speed.

Feel reassured? Instead of your life savings vanishing in a flash, you’ve got 30 seconds! No one to blame but yourself if you are slow to respond.

All rise!

Bob, you Rascal you! For being First Order Apologist and selling Soft Soap, Bunk, and general B.S. ,a Dollars$ Chutzpah Award to Bob Griefeld!!!

An open market means equal access, as Greifeld knows: suggesting 30 and 60 second safeguards is just contemptuous of traders–the kind who breath air.

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