SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Final Frontier - Online Remote Trading
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Arcane Lore who wrote (7670)9/19/1999 12:07:00 PM
From: Arcane Lore  Read Replies (3) of 12617
 
Wild Times After Hours

By GRETCHEN MORGENSON

... But an even greater concern is that rules intended to protect investors may be ignored by players in after-hours markets.

Consider, for example, a guideline instituted by the National Association of Securities Dealers to insure that a brokerage firm holding an order from a customer to buy or sell a stock at a specific price would not trade that stock for its own account ahead of the customer when the prevailing market for the stock would satisfy the customer's order.

Known as the limit-order protection interpretation, it was put into effect in 1995 and made NASDAQ a fairer place to trade stocks.

But the interpretation is in force only during the hours that NASDAQ is open, until 5:15 p.m. now and 6:30 p.m. as of Oct. 4. As a result, some market players fear that firms handling investors' trades after hours may ignore the guideline and put their own trading ahead of their customers'.

Another investor protection rule that traders may be flouting in after-hours trading has to do with short sales, transactions by investors who are betting that a stock will fall.

Traders who want to sell shares short are allowed to do so only when the stock's most recent transaction took place at a price the same as or higher than its previous trade. This is called the uptick rule, and was instituted to protect stocks from being manipulated downward by relentless short-selling.

In after-hours trading, however, there is no consolidated record of trades taking place among the disparate firms and markets. So traders say short sales are very likely taking place even when a stock is dropping in price. ...

The full article can be found at:
nytimes.com
(Free registration required)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News