> After trading was halted they set the cap at 20% loss for rolling back trades.... | Hacker News

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		ycombobreaker on Oct 22, 2013 \| parent \| context \| favorite \| on: How to lose $172,222 a second for 45 minutes > After trading was halted they set the cap at 20% loss for rolling back trades. FYI, NYSE rolled back transactions based on predetermined price rules. There were no discretionary rollbacks associated with Knight's "big day". > The only people that came out of this ahead were aggressive algos on the other side Don't forget the other market makers; they took the other side of those Knight trades and made the spread every time Knight lost the spread.

donpdonp on Oct 22, 2013 [–]

is there more information on what rollbacks did happen and what the price rules are?

jzwinck on Oct 22, 2013 | [–]

Search for "clearly erroneous" and the name of your favorite exchange. The policies are often spelled out fairly clearly, though most (all) will include an exchange discretion clause.

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