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Trickster
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Russian market and circuit breakers

September 16th, 2008, 12:47 pm

Obviously the drop would be linked in part to current oil pricing, but they halted trading for awhile.The debate about circuit breakers goes on."MOSCOW, Sept 16 (Reuters) - Russia's most liquid stock exchange MICEX suspended trade on Tuesday after the worst one-day fall in 10 years as Finance Minister Alexei Kudrin reassured markets there was no "systemic" crisis.Share trade on MICEX was suspended for one hour starting at 4:42 p.m. (1242 GMT) because of steep falls driven by liquidity fears, an exchange official said.The index was down 16.6 percent at 890.29 having fallen as low as 889.66 -- its biggest percentage loss since the Russian financial crisis of 1998.Trading was also suspended for one hour in the dollar-denominated RTS index .IRTS."Reuters - Russian stocks suspended
Last edited by Trickster on September 15th, 2008, 10:00 pm, edited 1 time in total.
 
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greghm
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Russian market and circuit breakers

September 17th, 2008, 11:45 am

QuoteTrading on all RTS markets suspendedTrading on RTS markets was suspended at 12.10 Moscow time due to the order of the Federal Financial Markets Service of Russia until a special instruction of the FFSM.For further information, please contact the RTS Public Relations Department at +7(495)705-9031, 500-3840They will make it though. Situation is different from what it was 10 years ago
 
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Trickster
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Russian market and circuit breakers

September 17th, 2008, 11:57 am

Not doubting that. Was just keeping an eye on if, where, and when circuit breakers would be triggered.
 
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greghm
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Russian market and circuit breakers

September 17th, 2008, 12:00 pm

Speaking of that, does the NYSE have some ? How can stocks like LEH or AIG fall that low ?
 
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Trickster
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Russian market and circuit breakers

September 17th, 2008, 12:09 pm

Funny you should ask. They are set each quarter, so they are callibrated to current market levels.NYSE Circuit Breakers for Q3 2008The debate, as you might expect, concerns pent up demand, among other things.People are going very hard on the moral hazard in some of these forums as well. They do not protect individual stocks through the breakers.
Last edited by Trickster on September 16th, 2008, 10:00 pm, edited 1 time in total.
 
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greghm
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Russian market and circuit breakers

September 17th, 2008, 12:13 pm

QuoteOriginally posted by: mackbarFunny you should ask. They are set each quarter, so they are callibrated to current market levels.NYSE Circuit Breakers for Q3 2008The debate, as you might expect, concerns pent up demand, among other things.People are going very hard on the moral hazard in some of these forums as well. They do not protect individual stocks through the breakers.Yeah that s the answer: nothing on individual stocks. Which is not the policy I think on the Euronext. Funny they still use points instead of percentage ... that would save some time each quarter to redefine the points.
 
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Trickster
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Russian market and circuit breakers

September 17th, 2008, 12:21 pm

Re: points vs. percentagePolicy makers opted for fixed vs. floating standard
 
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rmax
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Russian market and circuit breakers

September 18th, 2008, 3:15 pm

Just don't believe circuit breakers are the way to go. I thought the only reason they were introduced was after 1987 and the software went wrong and started just selling before anyone could stop it. There I think perhaps they add some value, but in reality I think algo models are more sophisticated nowadays and you should allow people to trade in an open market.
 
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Trickster
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Russian market and circuit breakers

September 18th, 2008, 5:54 pm

Just to clarify:I'm not a naive evangelist for standing public policy solutions, but have to factor them in.Never mind vacuuming up the nickels with lots of leverage, sometimes there are Ben Franklins in the streets.And look at what's happening to the shorts now. I imagine that will have some unintended consequences.
Last edited by Trickster on September 17th, 2008, 10:00 pm, edited 1 time in total.