S&P Shorts Now Over 11 Million!
Source: Paul Drockton / Money Teachers
The S&P 500 is now the new standard for stopping trades when the market collapses. Interesting to say the least:
"The U.S. Securities and Exchange Commission began an overhaul of rules adopted a quarter century ago to shut down the stock market and related futures trading during periods of volatility, proposing that curbs be triggered when the Standard & Poor’s 500 Index falls 7 percent.
The changes would switch the index used for circuit breakers to the S&P 500 from the Dow Jones Industrial Average, according to proposals submitted by U.S. equities exchanges and the Financial Industry Regulatory Authority. Index declines that set off halts in stocks, options and futures would be reduced and their duration shortened, according to a summary of the proposals from the SEC.
“Tighter circuit breakers and a coordinated effort will allow everyone to take a breath when it’s needed,” William Karsh, a consultant and former chief operating officer at Jersey City, New Jersey-based Direct Edge Holdings LLC, said in a phone interview. “If they stop trading and give people a chance to assess what’s going on, they can reopen without the crazy whipping action we saw on May 6, 2010.” (Source)
In other words, the markets will reopen more quickly during flash crashes so that the [Wall Street] Psychopaths can get back to plundering your savings and retirement. Comforting indeed.