Market makers are not able to buy or sell the underlying corporate bonds because volume mismatches occur between ETF trading and underlying security trading.
Shares of security software provider Sourcefire are trading sharply higher Thursday morning after the company posted better-than-expected results for the third quarter.
FORBES: Sourcefire Shrs Spike As Q3 Results Top Street Forecasts
The process of lending money against the security of assets, or trading assets with the banks' capital, helped to push asset prices even higher.
Under the rules, once a listing market issues a trading pause, the other exchanges are required to pause trading in that security on their markets.
FORBES: First Thing's First: Stock Circuit-Breakers In Place
Shares of security software provider Fortinet are trading lower Tuesday after Baird analyst Jayson Noland cut his rating on the unified threat management company to Neutral from Outperform.
Few things anger a trader more than seeing inaccessible market prints while actively trading in a particular security.
Sourcefire shares rallied sharply in late trading Thursday after the security software company posted better-than-expected Q4 revenues.
FORBES: Sourcefire Q4 Revs Top Ests; Shares Rally 11% After Hours
Fortinet share have spiked in late trading Wednesday after the security software company posted better-than-expected Q4 results.
FORBES: Fortinet Shares Spike As Q4 Results Top Street Views
Pair trading involves buying one security and shorting a similar security, for instance buying a stock like Merck (NYSE: MRK) and simultaneously shorting Pfizer (NYSE: PFE).
"By establishing a set of circuit breakers that uniformly pauses trading in a given security across all venues, these new rules will ensure that all markets pause simultaneously and provide time for buyers and sellers to trade at rational prices, " SEC Chairman Mary Schapiro said.
Fundamentally, the high volatility means investors are discounting extreme future scenarios and baking that analysis into their daily trading activity and their view of security prices.
"Limited customer relationship data has long been available to our journalists, and has never included clients' security-level data, position data, trading data or messages, " the spokesman said in a statement.
WSJ: Bloomberg Curbs Its Journalists' Access to Customer Data
Most convertible securities allow the buyer to convert into common stock at a fixed conversion price set at a modest premium to wherever the common is trading at the time the convertible security is issued.
This is particularly the case with a security that does not have a high level of trading activity on a given day.
Sitting on a trading desk, if you issued a security on Jan. 5 and on Jan. 11 you suddenly start to see more sellers than buyers, you better find out if something is wrong.
Taking my words a step further, if the security has low volume, specify exactly what your trading strategy is, including the length of time you think you will need to sell the full position given average liquidity.
The SEC, which laid out its plan last week for security-based swaps, wants to ensure customers trading on these platforms can request a quote from a single dealer if they so choose, while the CFTC, which oversees the rest of the market, wants to require swap users to receive prices from no fewer than five dealers at a time.
Blue Coat Systems shares are trading sharply lower this morning after the Web security and wide-area network optimization software company reduced its earnings outlook and disclosed a management shake-up.
FORBES: Blue Coat Cuts Outlook; Shakes Up Management; Stock Slides
"As true friends of Saudi Arabia, I think it is our duty to speak honestly about what is happening in that country, " she said, declaring that Saudi Arabia was "an important ally in global and regional security...a nation with whom we have very important trading relations".
Another hot performer was Palo Alto Networks, a maker of firewalls and other security technologies, whose shares soared 26 percent on the first day of trading in July.
FORBES: Investing Opportunity: Prepping For Cyber Pearl Harbor
New "investable" indexes, forthcoming early next year from the Center for Research in Security Prices at the University of Chicago, or CRSP, could reduce compulsory trading for any index funds that adopt them as a benchmark.
WSJ: The Intelligent Investor: The New Supercharged Index Funds
Any time a security jumps in price on high volume without a fundamental basis for doing so, trading becomes nothing more than a game of hot potato.
Blue Coat Systems shares are trading sharply lower in the after-hours session Thursday after the Web security and wide-area network optimization software company reported disappointing guidance for the July quarter.
FORBES: Blue Coat Systems Slides On Disappointing Q4 Guidance
Earlier in his career, Salem was a vice president at Security Pacific Merchant Bank, where he led projects for the development of real-time trading systems.
The feds said there were no takers, even though Natt drafted a formal offering statement, made expansive claims and went to the trouble of obtaining official Committee on Uniform Security Identification Procedures (CUSIP) registration numbers, which are issued to facilitate sale and trading of North American securities.
Idit Yaaron, the spokeswoman for the Tel Aviv Stock Exchange, told CNN that the main site of the stock exchange where the trading takes place was not harmed and operates on a very high level of Internet security.
Special Offer: You'll find investment and trading coverage of alternative energy companies in each issue and the hotline of Spear's Security Industry Analyst.
The online disclosure was part of a law meant to prevent insider trading in the federal government, but the non-profit research group raised stark national security warnings in its review.
Short interest accounts for more than 19% of the company's total float is 4.5 times the average daily trading volume of ESLR shares, indicating that ample sideline money exists to potentially push the security higher.
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