Monday, May 17, 2010

Naked Shorting

Is it just me or is the trading of the last two weeks reminiscent of certain weeks during Q4 of 2007 and much of 2008 when naked shorting literally exploded after the elimination of the uptick rule?

Should the SEC be going after GS or looking for the most egregious naked shorting operators?

What would be better for our markets long term?

Is the solar space being targeted by naked shorting?

Yes, there was naked shorting when there was still the uptick rule, but it worked less well, cost more money, and took a lot longer to work.

Wouldn't all those factors just mentioned be beneficial to almost all market participants?

What happened to algo (black box quants) that used to short sell massive over-valuation and go long massive undervaluation?

Whatever minuscule amount of market differentiation we had, we have completely lost since the flash crash (and maybe even a few days prior).

All that written, banks have seemed to stabilize since today's nadir though they are still trading punk.....

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