Nasdaq offers risk bailout package to financial sector

By | October 3, 2012
This isn't Mt Gox. Why should Nasdaq protect whomever it was that had buggy automated trading software? Purchasing and using trading software should have the inherent business risk that it can screw up tagged into it. If you as a financial business don't want that, then go place your orders manually.

But the problem is bigger, though: risk is being mitigated, and the risk-takers are not paying for it. So if banks get bailout packages from the ECB to continue gambling, and big failed gambles are blocked by Nasdaq, then what do the financial institutes actually pay for? Gambling at someone else's cost is a damn good business model, and finance isn't the only industry guilty here. I'd like to see the public sector stop taking on unnecessary risk, and rather put their effort in getting corporations to make contingency plans instead of offloading risk.

/via +Jim Lai 

Nasdaq cancels trades in Kraft after jump in shares
NEW YORK (Reuters) – Nasdaq canceled some trades in shares of Kraft Foods Group that had pushed the stock up about 29 percent in just one minute, the latest in a string of trading glitches

One thought on “Nasdaq offers risk bailout package to financial sector

  1. Justen Robertson

    I wasn't real pleased when Mt.Gox rolled back their crash either. Especially since the bitcoin transactions that were contingent on it could not be rolled back, so it wasn't a true and complete reversal. Nice reference though. I think if HFT keeps going on the people doing it had better suck it up and get used to computer glitches and manipulation of their algorithms for profit instead of asking for everyone else to bail them out for their mistakes. I don't get to call up Nasdaq and whine every time my wetware makes a bad trade, so why do they do it when their software does the same?


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