This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

NYSE, Nasdaq Play Blame Game

Stocks in this article: NYX NDAQ PG

Meanwhile, stocks continued to trade hectically Friday on heavy volumes. The Dow Jones Industrial Average slid by more than 200 points, falling into the red for 2010, with traders unhinged by the notion of Europe's solvency issues spreading across the Atlantic.

Appearing on CNBC Friday morning, Nasdaq CEO Bob Greifeld had some stinging criticism for the NYSE. "When you have the primary market -- the listing market -- deciding not to support the stock, to not trade it, to stop trading, that's sending ... a negative signal that there's something wrong with the stock," he said. "So instead of standing behind it, they basically walked away from that. It's equivalent to what happened back in the day when we had telephone markets, where traders didn't answer the telephone to incoming orders."

NYSE chief Duncan Niederauer then went onto the financial news channel to defend his organization.

"I got two observations to Mr. Greifeld's comments," he said. "One is, let's stop the finger pointing. This is about trying to move the ball forward, so let's try to be constructive. Number two: Let's just be clear about what the facts of what happened yesterday were. There's no walking away, there's no abandoning our obligations. We've had a market model in place for years that includes exactly what Bob is advocating for, which is a circuit-breaker, stock by stock."

The NYSE invoked these so-called LRPs (short for "liquidity replenishment point") in a handful stocks on Thursday, including five Dow components and, most notoriously, Procter & Gamble (PG). The LRP shifts trading in individual stocks from electronic clearance to a human auction, which slows the trading down so much that, in effect, the stock is halted.

After calling for a cessation of the war of words, Niederauer on his CNBC spot went on to insinuate that Nasdaq, with its robotic inability to deal with volatile situations, was to blame.

"You take the plane off autopilot sometimes, and you fly the plane," Niederauer said, noting that trading moved to human auction in the LRP stocks for periods of 30, 60 or 90 seconds Thursday afternoon.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs