NYSE A new proposal to change the definition of “bad trades” could have significant impact on investors, says a FactSet report, and could lead to unintended consequences.
“Aberrant” and “clearly erroneous” trades to received a simplified definition under NYSE proposal
The current system rules trades as either “aberrant” or “clearly erroneous” based in large part on the price divergence from the mean. The major exchanges, including the New York Stock Exchange, uses the concept of a "reference price," Dave Nadig, Director of Exchange Traded Funds, notes in a report titled “Reinventing History on Bad ETF Trades.”
“The reference price is essentially the last-known ‘good’ price for...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full ArticleAlready a member? Log in here
