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Thursday, March 01, 2007

Countering Media Marlarky

Tuesday's global cliff dive certainly spooked many investors, gave the media all sorts of stuff to blab about (nearly every major rag in the US had Tueday's dive featured on the front page), and invigerated forecasters' doubletalk.

The WSJ's Aaron Lucchetti was scribed an article for today's WSJ with the frightening headline, "NYSE's Trading Overload Draws Attention of the SEC." In another one of Lucchetti's "NYSE's nothing to get excited about" articles, he starts the article off by stating, "The New York Stock Exchange's move into the electronic age happened almost overnight. Now the Securities and Exchange Commission is looking into whether it happened too fast and contributed to this week's trading troubles" (Source, Wall Street Journal, 3/1/2007, By: Aaron Lucchetti and Kara Scannell).

In all liklihood, the SEC is probably not going to examine whether the NYSE's incredibly methodical and phased rollout of Hybrid happened to fast. Though Lucchetti might rope readers into his story with such a dramatic claim, the facts, once again, get distorted.

Please see this CNBC piece from yesterday. It's Bob Pisani, a tremendously respectable reporter -- in fact, has had a recent version of the Stock Traders Almanac dedicated to him -- discussing the systems glitch from Tuesday with long-time NYX/AX bear, Charlie Gaspirino. Good ole Charlie belches erroneous information as he tries to explain how Hybrid works. He goes to pontificate about his views on the proper staffing levels for specialist firms.

Pisani takes issue with Gaspirino's nonsense, and actually corrects some of Charlie's malarky. Then this afternoon, Gaspirino tried to dispute what John Thain told CNBC earlier in the day about the eye-popping idea that the SEC is investigating the NYSE. Unfortunately, Pisani wasn't around to keep Charlie, so his rant went unchallenged.

The point to all this is just to point out that the revolutionary changes occuring at the Big Board have many foes in the way of folks that have been steeped in an archaic, members-only, system. I'd truly like to know what Italian-American specialists Charlie spoke to to find out they were offended with the "Vinnie" comments.

No doubt, the huge point drop, the already nervous "here comes a correction" folks, and the timing of Hybrid make for jaw-dropping headlines -- point swings in the near-term voting machine.

2 Comments:

Anonymous Anonymous said...

was at a breakfast with the COO from NYSE this morn. He said NASDAQ had plenty of problems too.

The CME did not though. Traded record volume at three exchanges without a hitch.

10:04 PM  
Blogger Barry said...

Thanks for writing. Not only did NDAQ experience issues, but the AMEX was having problems of their own.

10:19 AM  

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