NYSE A new proposal to change the definition of “bad trades” could have significant impact on investors, says a FactSet report, and could lead to unintended consequences. “Aberrant” and “clearly erroneous” trades to received a simplified definition under NYSE proposal The current system rules trades as either “aberrant” or “clearly erroneous” based in large part on the price divergence from the mean. The major exchanges, including the New York Stock Exchange, uses the concept of a “reference price,” Dave Nadig, Director of Exchange Traded Funds, notes in a report titled “Reinventing History on Bad ETF Trades.” “The reference price is…
Factset Pans NYSE Price Reporting Proposal
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.