As of the end of October "The New York Stock Exchange" said it will no longer impose curbs on computer-program trading that were put in place after the crash of 1987, claiming they're no longer as effective in damping swings in prices.

The exchange will stop prohibiting brokerages from entering some program trades when the NYSE Composite Index rises or falls more than 2 percent, according to a notice sent to member firms today. The so-called collars had been in effect since 1988 and were triggered 17 times this year, according to a filing with the Securities and Exchange Commission.

The curbs applied only to some index arbitrage trades on stocks in the Standard & Poor's 500 Index executed at the Big Board. Brokerages weren't barred from turning to rival exchanges to complete those trades.

Increased electronic trading has also made arbitrage strategies a smaller piece of daily equity trading, the NYSE said in the filing. Index arbitrage strategies accounted for about 4.6 percent of the total shares bought or sold at the NYSE, according to data on its Web site.

Well Let's review

I love looking at headlines that always seem to support what we already knew from a technical analysis perspective.

What hit the cover of "Time Magazine"? You Guessed it!

Now check out the stock!

Message Board Post

This site has been so amazing through all this volatility! Thanks John for getting us out of so much stuff! I'm doing so much better this time around (correction wise)...this site has been invaluable. Way less mistakes this time.

Pam 11/09/07

Message Board Post

Congrats on your learning curve, Pam. I had to learn each of my option lessons several times (AFTER being aware of them, from John, Cap and from the site) and I fear I have more lessons in the future, but, for fast learners (and good listeners), this site allows the avoidance of expensive mistakes (like mine) and the opportunity of learning from the best, not just the technical aspects, but, more importantly, the mental ones.

Quix 11/09/07