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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: ratan lal who wrote (16663)	4/16/1998 1:21:00 PM
From: ViperChick Secret Agent 006.9	Read Replies (1) \| Respond to of 94695

well all I can say about that is this people who trade the futures talk about the pits running the stops on the futures all the time..... I dont have a clue how its done the money it would take etc etc etc but the idea is out there.....

To: ratan lal who wrote (16663)	4/16/1998 1:33:00 PM
From: vincenzo	Read Replies (1) \| Respond to of 94695

MORGAN STANLEY FINED: Morgan Stanley & Co. was fined $1 million by the National Association of Securities Dealers for allegedly manipulating the price of some stocks that are part of the Nasdaq 100 index, to avoid losses on options based on that index. NASD Regulation Inc. said the brokerage firm manipulated the price of a total of 10 securities on two separate days in 1995 when options on the index were set to expire. WSJ Go ask the masters how indexes are manipulated. vincenzo

To: ratan lal who wrote (16663)	4/16/1998 1:33:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 94695

Ratan, that's exactly what Morgan Stanley did (according to the NASD - wouldn't want to get sued) on the Nasdaq-100. They had program trading short positions in place, presumeably with long calls or short puts. The firm's OTC traders sold short several of the stocks with the program trading group as the buyer (the net position of the firm was unchanged by these "trades"). The trades were crossed at a price above the market and caused the opening print to be higher than it would have been without their internally crossed "trades". The opening print, as you know, is used to determine the settlement value of the index and the options associated with it. MS's option positions would settle at a higher value and then they could cover the short positions in the open market at the lower prevailing prices. If that's not manipulation, we should all just buy bank CDs. Bob PS: I hope that made sense.