Stock exchanges invalidating craziest priced sales during the 2:40-3:00 EST period

[Kurt_and_Hunter]

Long story short: If you're the guy who bought Acenture at $0.04 (Or P&G at $39) your money will be refunded and the shares will not be delivered. (I have mixed feelings about this.)

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Nasdaq to cancel trades
Thu May 6, 2010

Nasdaq to cancel trades

NEW YORK, May 6 (Reuters) - Nasdaq Operations (NDAQ.O) said it will cancel all trades executed between 2:40 p.m. to 3 p.m. showing a rise or fall of more than 60 percent from the last trade in that security at 2:40 p.m or immediately prior. Nasdaq said the stocks affected and break points will be disseminated soon.

http://www.reuters.com/article/idUSN0613925120100506?type=marketsNews


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P&G Trades Won't Stand: NYSE CEO

The CEO of the New York Stock Exchange told CNBC Thursday that some of Thursday's trades in Procter & Gamble "will get taken off the table."

P&G , which dropped about $20 in a minute, traded as low as $39.37 at one point. "That $39 trade will not stand," said Duncan Niederauer. "I think it was just a few offers and there weren't many bids."

"This is the market structure we all signed up for," Niedermayer said. "Today we had to slow the market down. We also have the right to slow down the market as appropriate," he added.

"I don't think you are looking for one bank that traded the wrong number of shares," Niederauer said. "Electronic markets have a different business model."

The chief executive also had a prediction for Friday's market open: It's going to be "fairly ugly tomorow morning."

http://www.cnbc.com/id/37001247

[Ruby the Liberal]

1. Accenture is the only one I am aware of that dropped 60%

P&G fell 20% and those were the 2 top mentions.

[Kurt_and_Hunter]

3. I just updated the OP w/ article about P&G trades

[Ruby the Liberal]

4. Thanks for the update

Unwinding this is going to be a nightmare.

[Statistical]

9. Accenture stock fell 99.9% at one point.

$41 stock traded as low at $0.04 for about 2 seconds. Those trades will obviously be busted.

Technically the stock was "worthless" bid of $0.00 for a couple seconds because the sell order at market was so huge it wiped out all remaining buy orders leaving the stock unbalanced (people willing to sell at any price, nobody willing to buy at any price).

[Poll_Blind]

2. Whatwhatwhaaaaat?!? Where did you hear this? n/t

PB

[bluestateguy]

5. Does that affect the final DJIA and other closing numbers?

?

[Kurt_and_Hunter]

8. No.

Only a few trades during the few minute freefall. All trades after about 2:50 are safe.

[Dappleganger]

6. So we have Freaky Thursday and Ugly Friday

But I think that tomorrow may get freaky, too.

[Statistical]

11. Tomorrow is going to be a nightmare with volatility off the charts.

Thank god I got 20% cash on the sidelines and I am short as much as I am long.

[cbdo2007]

15. Yes tomorrow will be scary for my current positions but I'll be shopping for more if prices are low

again.

WOOT!!

[Cali_Democrat]

7. Link

http://www.reuters.com/article/idUSN0613925120100506?type=marketsNews

[dems_rightnow]

10. Ha, someone's getting some overtime....

... what a mess!

[Kurt_and_Hunter]

12. Thank you! Added to OP

[still_one]

13. Why don't they invalidate the whole day then. That is the problem with the program trading

programs run by the big institutions.

I wonder if this was a flash trade which got loose in the software

[cbdo2007]

16. Yes, this does complicate many things such as automatic stop loss orders

made while the market was "artifically" down.

I know they are invalidating those two stocks but those brought all the rest of stuff down with it. one of my ETF's went down 3% to 15% within about 2 minutes, then slowly back up to the expected normal 3% loss. Just think of how many shares accidentally traded during that time?

[still_one]

17. How many people sold outside of that two hour drop because of this aberation?

If anyone was not yet skeptical of the markets and wallstreet, the actions today should convience them

[ljm2002]

14. "Malfunction voids all plays and pays"

That's the warning posted on all the slots here in Vegas. Sounds like they should post one on the trading floor // all online trading sites too.

[greencharlie]

18. awww darn, that was better than the POWER BALL! nt