Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (16867)	5/7/2010 9:59:36 AM
From: ahhaha	Read Replies (1) \| Respond to of 24758

I wrote this last night on the Yahoo SPY board concerning Uptick Rule : What I'm trying to convey is that the uptick rule can be implemented, but the powers that be, brokers and institutions, don't want it to be because doing so would inhibit their ever growing predilection for market manipulation. The manipulation takes this form: An institution gives a NH order to its broker's MM. The MM works the order by going market order short sale and the exchange breaks the size entered which the MM's machine shows as executable in full into round lots. This has the machine gun effect of clearing the nearby below demand either arriving or in the electronic book. Price declines. The institution is simultaneously long and short the stock for hedging purposes. The machine gun forces price down into larger orders given either to other MMs holding booked limits or to the broker's MM. Short in round lot and cover in block. Can't pull this manipulative stunt with uptick rule. The current SEC doesn't want to upset this little money making machine because the institutions and brokers(see GS) using it are rewarding the SEC's admin authority(see DM)