SEC to remove price bands after trading system upgrade

Kumar

Kumar

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http://forum.srilankaequity.com/t15160-sri-lanka-newspapers-22-01-2012#98771

The Securities and Exchange Commission (SEC) will remove price bands once the Colombo Stock Exchange (CSE) goes online with its Automated Trading System (ATS) upgrade with ATS Version 7 next month, SEC officials said.

"We will replace this with circuit breakers," an SEC official said. The CSE postponed the ATS upgrade amidst some resistance from the stock brokers, early this month. "This has to be done as the hardware in our system is outdated. We cannot afford another system crash like last year," a CSE source said, adding that last year on September 19 the system went out of control and was not reflecting the actual prices of some shares after it started functioning.

He said the regulator cannot remove price bands (which was also a recent request from the brokers till the Colombo stock Exchange's (CSE) trading platform is upgraded.

sriranga

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"We will replace this with circuit breakers,"

May be positive thinking?

lokuayya

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Circuit breakers is a good idea.But in a illiquid market how can this be implemented .i am just wondering ,Just by a trade of 100 shares you may be able to move it beyond the trigger level of circuit breakers.
if someone want to stop the trading session he can sell or buy just 100 shares beyond trigger levels.is this possible?

apollo5001

apollo5001

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lokuayya wrote:Circuit breakers is a good idea.But in a illiquid market how can this be implemented .i am just wondering ,Just by a trade of 100 shares you may be able to move it beyond the trigger level of circuit breakers.
if someone want to stop the trading session he can sell or buy just 100 shares beyond trigger levels.is this possible?

Theoretically possible, if someone alone manage a trade outside the imposed price bands

cseguide

cseguide

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anyway removing unknown formula of price brand is a good dicission

bakapandithaya

bakapandithaya

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cseguide wrote:anyway removing unknown formula of price brand is a good dicission

yes, no 1 knw da band 4mula Sad

Leo

Leo

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If circuit breakers, does it mean no more Runs beyond a limit? Sad

i think no need of price band or circuit breaker. Since if a trader cant survive in a manipulating situation of a share, he should not trade in such. If he thinks he can survive in a manipulated situation, he can trade on this share. So it should be self discipline and the knowledge that the trader should have.

So no need of bands or breakers. Make the traders more educated on such tradings. And catch the manipulators by monitoring and investigation.

mra

mra

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manipulation means it's a gambling market. one gains on some one's pocket. like pick pocketing. the best place for manipulators and players is the casino.

educated decent crowds never go into manipulated stocks. coz it's not a decent earning...that money not last long..

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SEC to remove price bands after trading system upgrade

1 SEC to remove price bands after trading system upgrade Sat Jan 21, 2012 8:00 pm

Kumar

2 Re: SEC to remove price bands after trading system upgrade Sat Jan 21, 2012 8:22 pm

sriranga

3 Re: SEC to remove price bands after trading system upgrade Sat Jan 21, 2012 9:07 pm

lokuayya

4 Re: SEC to remove price bands after trading system upgrade Sun Jan 22, 2012 8:37 am

apollo5001

5 Re: SEC to remove price bands after trading system upgrade Sun Jan 22, 2012 2:23 pm

cseguide

6 Re: SEC to remove price bands after trading system upgrade Sun Jan 22, 2012 2:28 pm

bakapandithaya

7 Re: SEC to remove price bands after trading system upgrade Mon Jan 23, 2012 9:16 am

Leo

8 Re: SEC to remove price bands after trading system upgrade Mon Jan 23, 2012 10:45 am

mra

9 Re: SEC to remove price bands after trading system upgrade

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