Market makers, stub quotes and new SEC rules

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Uploaded by on Jul 12, 2010

The Securities and Exchange Commission wants to make equity markets safer by pushing market makers to tighten up their standards, and stop making so-called stub quotes. Paddy Hirsch explains.

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  • Lol. The SEC created this problem in the first place. True market makers were pushed out of the business years ago when they were forced to tighten spreads and quote in pennies. They could no longer cover costs so they became agency only traders. The SEC then allowed HFT's and algos to overrun the markets. The display of depth of market by algos is not real. The flash crash was caused by by a lack of market makers, algo juiced fast markets, the low cost/risk penny spreads and no uptick rule

  • Great analogy and explanation, just what I was looking for, thanks a mill -

  • But i still didn't understand the relationship between the swimming pool example, and the 2008 equity crisis.. It is complicated...

  • I am the first one to comment on this video this year, and i believe i am the only one who watched it this year as well...

  • I like that

  • take off ur clothes man. lets have fun in the pool.

    need sum help with apply suncream? im more than happy to give u a hand

  • Brilliant

  • very nice ... great info ... can you please make a video on World's Banks Trillions Due to repay! How short term borrowing can ignite next crisis. thanks mate!!

  • love it!!!!!!!!!!

  • love it please make more videos

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