reply on: ETF circuit breakers? \ stacker news ~bitcoin

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51 sats \ 4 replies \ @siggy47 6 Jan \ on: ETF circuit breakers? bitcoin

I posted about this earlier. The U.S. is about to discover what a free market is for the first time.

I am sure it will happen both ways at some point but 10% in 5 minutes is a lot. Not likely to be a common occurrence. Also, not sure how this works with commodity etfs when the underlying is still trading in the spot market.

50 sats \ 2 replies \ @siggy47 7 Jan

On NYSE, level 1 circuit breaking pause kicks in at 7%. Amount is based on previous day's closing price. Closing price is on ETF. Therefore, there will be some crazy days when the ETF lags spot substantially. I don't know where he got 10% in 5 minutes. Maybe that's a halt for the day, but level one pauses will still be crazy.

374 sats \ 1 reply \ @grayruby 7 Jan

Good point but I don’t recall ever seeing oil etfs for instance being halted because of a 7% overnight move. Which you don’t see often but happens occasionally.

50 sats \ 0 replies \ @siggy47 7 Jan

Remember this? It wasn't even an ETF, but the actual commodity. https://www.reuters.com/business/lme-suspends-nickel-trading-day-after-prices-see-record-run-2022-03-08/ It was the LME, but they could do it in the U.S. too. Commodity ETF follow same exchange rules as equities.