Erroneous Anadarko (APC) Trade Triggers 3rd Single-Stock Trading Halt
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Shares of Anadarko Petroleum (NYSE: APC) were halted mid-day after the new single-stock circuit breaker was triggered following an erroneous trade. This is the third time the single-stock circuit breaker has temporarily halted intra-day trading of an NYSE-listed security since the new SEC rule was implemented in the wake of the May 6th"flash crash."
Today's halt in Anadarko was a 'volatility trading pause' triggered at 10:56AM ET after 200 shares of the stock traded at $99,999, well above the prior trade of $39.14. The trade was ruled erroneous and removed at 11:03AM ET, according to NYSE spokesman Ray Pellecchia. Shares of Anadarko resumed trading at 11:01AM ET at $39.14, the same price before the erroneous trade.
The single-stock circuit breaker halt in Anadarko follows halts in Citigroup, Inc. (NYSE: C) and Washington Post (NYSE: WPO) under similar scenarios.
On June 29th, shares of Citigroup were halted for 5 minutes after 8,820 shares of Citigroup traded at $3.3174, which was well off the prior trade of $3.80. On June 16th Washington Post (NYSE: WPO) was halted after 400 shares traded at $919.18, followed by another 200 shares and then a third trade of 166 shares at $929.18. The last trade before the erroneous trades was $455.14.
While the new single-stock circuit breakers appear to be working in its ability to detect erroneous trades, some argue that some tweaking to the system may be needed,
In a recent blog post about how effective the new single stock circuit breaker is, Joe Saluzzi of Themis Trading was critical. He said a single trade should not trigger a halt. He said there should at least be a minimum number of trades before the breaker is triggered, which would prevent false triggers from going off.
He also warns that "every trader in the world who has the ability to print a trade on an exchange or TRF now has the power to halt a stock at any given time." He said there seems to be a high probability of an abuse of power here.
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Today's halt in Anadarko was a 'volatility trading pause' triggered at 10:56AM ET after 200 shares of the stock traded at $99,999, well above the prior trade of $39.14. The trade was ruled erroneous and removed at 11:03AM ET, according to NYSE spokesman Ray Pellecchia. Shares of Anadarko resumed trading at 11:01AM ET at $39.14, the same price before the erroneous trade.
The single-stock circuit breaker halt in Anadarko follows halts in Citigroup, Inc. (NYSE: C) and Washington Post (NYSE: WPO) under similar scenarios.
On June 29th, shares of Citigroup were halted for 5 minutes after 8,820 shares of Citigroup traded at $3.3174, which was well off the prior trade of $3.80. On June 16th Washington Post (NYSE: WPO) was halted after 400 shares traded at $919.18, followed by another 200 shares and then a third trade of 166 shares at $929.18. The last trade before the erroneous trades was $455.14.
While the new single-stock circuit breakers appear to be working in its ability to detect erroneous trades, some argue that some tweaking to the system may be needed,
In a recent blog post about how effective the new single stock circuit breaker is, Joe Saluzzi of Themis Trading was critical. He said a single trade should not trigger a halt. He said there should at least be a minimum number of trades before the breaker is triggered, which would prevent false triggers from going off.
He also warns that "every trader in the world who has the ability to print a trade on an exchange or TRF now has the power to halt a stock at any given time." He said there seems to be a high probability of an abuse of power here.
Market Moving News and Intelligence - Free Sign-Up
http://www.streetinsider.com/premium_content.php
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