It's Official: It's A Broken Market And "Hundreds Of Thousands" of Orders Affected
January 9, 2013 - 8:04pm
It will not come as a surprise to too many Zero Hedge readers but we feel a big told-you-so dance coming on again. The WSJ is reporting, via BATS site that: *BATS SAYS `SYSTEM ISSUE' CAUSED PRICING PROBLEMS OVER 4 YRS:WSJ In simple terms BATS admits that the Reg NMS trading principle of NBBO (National Best Bid of Offer) failed; meaning the core premise of market structure since 2005 has been massively abused by at least one and likely all exchanges. The bottom-line is that the primary and really only safeguard in the market when HFT was unleashed was never operational and the SEC had i) no real supervision over who was abusing the NBBO and ii) no way of keeping track what really happens in the market. Via BATS: Dear Member, Please be advised that BATS has determined that upon an NBBO update on BATS' BYX Exchange, BZX Exchange and BATS Options, there are certain cases wher...
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