It’s Official: It’s A Broken Market And “Hundreds Of Thousands” of Orders Affected
by Tyler Durden
It will not come as a surprise to too many Zero Hedge readers but we feel a big told-you-so dance coming on again. Via BATS:
*BATS SAYS ‘SYSTEM ISSUE’ CAUSED PRICING PROBLEMS OVER 4 YRS:WSJ
*BZX Exchange (10/24/08 – 01/04/13) Average Daily Incidents: 410.1 Total Incidents: 433,039
In simple terms BATS admits that the Reg NMS trading principle of NBBO (National Best Bid or Offer) has failed; meaning the core premise of market structure since 2005 has been massively abused by at least one and likely all exchanges. The bottom-line is that the primary and really only safeguard in the market when HFT was unleashed was never operational and the SEC has had i) no actual supervision over who or what was abusing the NBBO and ii) no way of keeping track of what really happens in the market.