the shorts have been in place for months. it's the buying hype that has increased the beta.
“Disorderly market conditions “ seems to be a very conveniently vague phrase that can be defined whenever the regulators fancy?
Exactly.
It hasn't been triggered by shorts and let's be honest when this firm which is like a budget blockbuster cant deliver the results the share price predicts, guess who is going to be caught with no pants as the tide goes out.
But who’s stopping the buyers and sellers participating right now? Not the redditors?
Not at all. Eurex is the only exchange that has vague disorderly market parameters. They call it a volatility interruption. The cme and nyse have very strict conditions which would trigger a circuit breaker (preventing disorderly markets)
Not sure if there is a strict definition tbh
iirc its the exchange. if a stock jumps 30% in 5 minutes it gets halted. (i think off the top of my head)
So they get to decide what constitutes orderly then. That’s not very good regulation, if you ask me.
Do you think I'm defending the hedge funds in question here? I'm absolutely not.Again... not trying to be a c u next tuesday here.
So what?
No short in the first place = no Reddit short squeeze now
You know that phrase you see pop up on every single ad for investment brokerages "your capital is at risk, you may not get back what you put in"
I reckon the funds who make their corn going short on these securities know that better than most and shouldn't need a pickmeup from any of us.
If you don't want the regulator or exchange (de facto regulator) to decide. Who do you want to decide?
This is my point. Guess who is long at 20 bucks...Brutal but to be expected. These firms have no prospects reflecting the recent SP.
@monkeytassle and @nyron4england running down the beach collecting all the swimsuits as we speak
Of course the regulator needs to decide, but their rules need to be clear.
I'm sure they are. I'm not governed by the sec though so not familiar with them. They also allow the exchanges to be sub regulators and set their own limits fwiw
It's not probably. They do.In my experience it's very, very complicated..
There are so many interconnected systems all with checks and balances to try and maintain orderly liquidity across the markets. That includes options, multiple other exchanges and all sorts of other instruments..
Add in the behind the scenes broker dealer systems that try and place transactions via market makers etc and these situations happen.
E.g. Citadel is the largest MM for Nyse retail investors, and their systems probably suspend/shut down if they cannot provide adequate liquidity or handle spikes in trading volumes at times of very high volatility.
What a massive surprise
Yep. I'm just happy I sold a bit of vol.
