Traders following the arcana of high frequency stock trading and raised questions on what traders could -- and couldn't do -- as Google's shares were halted.
"Rule 201 short sale circuit breaker did activate once down 10%. no shorting on bid," wrote Joe Saluzzi of Themis Trading. Saluzzi's Themis counterpart Sal Arnuk also highlighted that high frequency trading market makers could short Google's shares off of the Nasdaq (NDAQ) exchange without having to find buyers.
According to Arnuk, after the company's 10% stock dive, the Securities and Exchange Commission's short sale rules kicked in, blocking most traders from selling Google's shares. However, Arnuk contends high frequency trading market makers are exempt from such prohibitions.
"Would $GOOG have tanked -10% so fast if HFT
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