NASDAQ Did the Right Thing by Halting Its Markets Last Week

NASDAQ Did the Right Thing by Halting Its Markets Last Week

By Irene Aldridge

Just over two weeks ago, NASDAQ stopped trading midday, fueling a new wave of speculation about the reliability and, ultimately, appropriateness of using computer technology in trading. Critics of trading algorithms readily jumped on the news bandwagon, happily denouncing technology as a source of all economic ills.

In reality, however, on Aug. 22, 2013, NASDAQ halted its servers to comply with instructions from the U.S Securities and Exchange Commission (SEC). Had NASDAQ continued trading as usual that day, it would undoubtedly face hefty fines on the order of $10 to $15 million, like the penalty assessed to the New York Stock Exchange by the SEC in September 2012 for failing to stop trading in similar circumstances.

How so? First of all, the halt was not driven by any disruptions in the trading engine of NASDAQ. In other words, all trading orders submitted to NASDAQ were processed in proper fashion without a hint of trouble, just as they always do. The actual disturbance triggering the trading halt occurred in the reporting functionality of NASDAQ. This reporting engine, known as Securities Information Processor (SIP), is an SEC-designed system common to all exchanges in the U.S. that is used to collect and archive the latest market information from all exchanges. Once the information is accumulated by the SIP, it is distributed back to the exchanges. This is done with the explicit goal of protecting individual investors by ensuring that every investor’s market order is executed at the best price available for a given security in the U.S. exchanges at any given time.

NASDAQ halted trading when it detected that the timestamp on NASDAQ messages sent to SIP differed from the timestamp of messages sent from SIP to NASDAQ. As I discussed in my new book, High-Frequency Trading: A Practical Guide to Algorithmic Strategies and Trading Systems, 2nd edition (Wiley), disruptions of this sort can be due to factors as benign as machine overload, or as malicious as hacking, the latter ruled out by NASDAQ. And according to the SEC guidance, NASDAQ has always had the authority and discretion to “(1) halt trading on Nasdaq of a Nasdaq-listed security to permit the dissemination of material news.” Since the latest trades and quotes are “material news” for many traders relying on technical and quantitative market analysis, as well as for investors that simply seek to obtain fair execution in the U.S. markets, NASDAQ acted appropriately under the circumstances by shutting down the systems until malicious causes of the incident were ruled out.

It’s worth reiterating that, just like in any other industry, technology is good for the financial sector. In addition to lowering costs of trading, making markets more transparent, and returning money to investors, financial technology has been making our markets efficient year after year. Ask any economics and finance professor about market efficiency, and they will define it as follows: efficient markets distribute and incorporate news instantaneously. Most academics rightly think that this is the primary function of the markets, and not casinos that some people have come to expect from exchanges instead.

Investors who call for a ban on market technology and high-frequency trading (the two are really the same discipline) should consider the following: Unlike 20 years ago, we are now bombarded by millions of data points every second — market data, economic indicators, news, Twitter, etc. Human eyes are biologically incapable of processing such volumes of information. (Think about this: movies display only 24 frames per second, and human brain thinks that it is watching a real-time show as people cannot absorb more data than 24 frames per second.) Without technology, financial markets simply cannot function any longer.

As a result, denouncing current technology does little to help the markets. To prevent future glitches in trading, markets need more technology, not less. Developing the new technological frontier is easier than it may seem to a casual observer since many models for scientific monitoring and prediction already exist. Implementation and deployment of newer automated surveillance and risk management methodologies may need to become a priority of organizations across the entire financial system, at NASDAQ and beyond.

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In addition, US cellular networks operate generally right here. And also at the exact same prices for calls, messages and also network – a blessing, specifically when it pertains to the Internet! Particularly since the wifi in several areas in Puerto Rico was so poor. The official languages are Spanish and English – yet the large bulk of citizens speak instead the former. Puerto Rico is located in the humid equatorial environment area, and also the typical yearly temperature is around 25 degrees Celsius. The tourist period ranges from December 15 to April 15, and also tropical heavy rainfalls frequently occur in the high season. And it turned out to be real – throughout our week-long keep it really did not rainfall only one day. Fortunately, the rain, although it was pouring down, came very quickly as well as after 15-20 minutes the storm was over as well as the sun was shining once more. An intriguing truth is that, according to a research executed when, Puerto Ricans are the happiest nation on the planet. If this is true, it would mean that the popular statement that money does not bring happiness has a grain of truth in it. It is estimated that practically half of the inhabitants of Public Relations struggle with poverty, which can be seen while circumnavigating the island. Considering That Puerto Rico is an island, it is absolutely an aircraft Or a ship, if you wish to attach on Public Relations throughout a cruise ship in the Caribbean. The major airport terminal in San Juan the resources is well connected with major United States cities. From what I keep in mind, our flight from Atlanta lasted 3 hours It is best to lease a vehicle in Puerto Rico as well as circumnavigate the island by doing this. 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Nobody flies to Puerto Rico to see its cool government structures. You desire fun in the sun. Fortunately is that Flamenco Beach will certainly live up to your daydreams and afterwards some. Not just does it use white sand and blue water that shimmies imminent, however it additionally flaunts bathrooms, lifeguards, food stands, volleyball webs and also visitor terminals where you can rent devices for things like snorkeling and diving. Puerto Rico’s economic situation is among the most dynamically establishing in the Caribbean. The diversified industry has plainly surpassed agriculture as the primary driving force of the economic climate and also a source of income. Considering that the 1950s, American firms have been investing heavily on the island, encouraged by duty-free access to the US market and tax breaks. The island has United States base pay regulations. Sugar manufacturing shed its prominent position in agriculture to dairy products and livestock production. Tourism is typically a crucial source of income, it is estimated that Puerto Rico was checked out by nearly 5 million individuals in 2004. 2001-03 saw a decline in financial growth, mostly because of the US economic crisis; in 2004-05 there was an economic growth, as well as in 2006-07 it dropped once again. Puerto Rico is just one of one of the most dynamically creating Caribbean nations. The varied sector has outshined farming and also is currently the main source of income. Considering that the 1950s, American companies have actually been spending for the island, motivated by the duty-free exchange with the USA as well as tax obligation rewards. The island undergoes US minimum wage legislation. Sugar manufacturing lowered, and the dairy industry and livestock manufacturing became the major income. Tourist has been an essential income source for many years. It is estimated that in 1999 Puerto Rico was checked out by 5 million tourists. The prognosis for 2000 is good, gave that the financial boom in the United States as well as the growth fads in tourism and also building and construction proceed. Everybody wanted a piece of the New World, and also every person was willing to combat to get it. Nowhere is this more apparent than the Castillo San Felipe del Morro. Officially called La Ruta del Lechón, the Pork Highway is exactly what it seems like: a three-mile stretch of road where every dining establishment specializes in pork. One of the most popular kind of pork is lechón, a special meal in Puerto Rico that includes spit-roasting a whole pig with a mix of sauces and also spices. Obtain your blood pumping with a trip to the Toro Verde Adventure Park in central Puerto Rico. It provides ziplines, rope training courses and rock climbing up obstacles that are ensured to make you pee your trousers a little when you understand simply what you’ve obtained into! The park’s piece de resistance is “The Monster,” which is detailed in the Guinness Publication of Globe Records as the longest zipline worldwide. With cobbled roads, active plazas and vivid homes that stack with each other like building blocks of yellow, blue, eco-friendly, orange as well as turquoise, Old San Juan is just one of the most lively places to go to in Puerto Rico. This is why locations like Isla Culebrita exist. Isla Culebrita is an uninhabited island off the coast of eastern Puerto Rico. It’s just concerning a mile long, as well as access is restricted to ferries and also water taxis. Museo de Las Americas There are numerous museums in Puerto Rico, but just a handful are actually concerning Puerto Rico. The Museo de Las Americas is among these valuable areas. It has artifacts, tokens and textiles from lots of indigenous groups that stayed in Latin America before it was conquered, and it can take you on a multi-continental trip with history. If you like to eat, Mayaguez is the city for you. It’s house to whatever from great dining facilities to open-air coffee shops with large, colorful umbrellas, so you’ll have a lot of choices when your stomach begins growling. El Yunque National Forestis Covering greater than 28,000 acres, the El Yunque National Park is a rich, damp rainforest where thick vegetation covers whatever from wriggling snakes to croaking tree frogs. It’s the only exotic rainforest in Puerto Rico, as well as visitors originate from around the Carribean to witness both its elegance and biodiversity. Found in the city of Cabo Rojo on the southernmost suggestion of Puerto Rico, the Los Morrillos Lighthouse is among those stunning locations that you can only find in the Caribbean. It’s set down on top of white sedimentary rock cliffs that are surrounded by salt marshes as well as shallows, as well as the waves crash against the cliffs with a violence that’s startling yet attractive. Cayo Santiago is a small stretch of land off the eastern coast of Puerto Rico.

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The synergistic (enhancing) action of CBD and THC relative to each other is utilized here. When utilized independently, both cannabinoids can do much more together than. In addition, they jointly stimulate the department of inactive afferent neuron, nurture the fatty envelope of the nerves, and prevent myelin inflammation that triggers loss of function in some autoimmune diseases. There are also stories where marijuana in its natural form softened spasticity, lowered the frequency of seizures and convulsions, and suppressed unpleasant scrapie in Parkinson’s illness. This is where the idea of receiving RSO, meant only for chronically ill individuals, stemmed . Both cannabis oil type CBD and RSO also contain other cannabinoids, such as cannabichromene (CBC) and cannabigerol (CBG). The secret is not, however, that CBD often has a structure expanded to consist of flavones, flavonoids, terpenes, terpenoids, amino acids and omega acids. 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Why such a decision? – Modern clinical research reveals that CBD + THC cope with serious autoimmune illness, while CBC or CBG show very little activity in the presence of both substances, much like flavonoids, flavones or terpenes, for that reason their material in the service appears to be unneeded. In addition, the cannabis pressure from which THC and CBD are derived contain negligible quantities of other cannabinoids. RSO oil is entirely unlawful in Poland, which is why it can not be gotten in any lawfully running shop on the marketplace. Obviously, there are a number of amateur approaches for obtaining it, but it’s good to know that compounds gotten artificially in house laboratories are unsure, untested, and the impact unknown. The solvent for the production of home RSO is normally gas, alcohol and even kerosene, which instead of treating, poison. Alcohols and their like impair cannabinoids, and so in reality, they don’t bring anything new to the medical world. Marijuana oil has already marked a brand-new period in which man stopped to fear what is unidentified, and began to find what our ancestors had actually currently noticed and utilize the substantial capacity, initially glimpse, a little bizarre relationships, associated generally with pathology. Medical marijuana, contrary to its name, does not indicate fermented female inflorescences and leaves consisting of psychedelic substances coiled in so-called “Joints”, but a beneficial oil without psychoactive THC. A standard person, after taking dosages of medicinal cannabis and attaining the appropriate state of cannabinoids in the blood, can delight in increased resistance, reduced susceptibility to cancer, postponed aging and decreased threat of stroke or cardiac arrest. CBD oil consists of cannabidiol as a base ingredient and may consist of only trace amounts of tetrahydroxycannabidiol (THC). RSO oil has a low CBD content, while high THC. Both cannabis oil type CBD and RSO also include other cannabinoids, such as cannabichromene (CBC) and cannabigerol (CBG). CBD medical marijuana oil is a rather useful mix of cannabinoids, designed to secure versus 21st century illness. Oil of cannabis in a kind of hobby APR contains small amounts of CBD, balanced by the existence of THC.


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