Circuit breakers and suspensions aren’t limited only to illegal matters. There are a lot other circumstances:
Technical (software bugs, power, servers, other hardware)
Extreme volatility → More common
Extreme outside events (like terrorism, political, social, natural catastrophes, 9/11, or some years ago, a rumor about a bomb in the US White House caused a Flash Crash, momentarily closing stock exchanges)
Events on the companies
Rumors that could affect directly or indirectly the companies (the stock exchanges will suspend the stocks until clear information appears)
There are lot of circumstances that could trigger a temporary or definitive suspension, full or partial suspension (all trades or buy or sell trades).
Most people doesn’t know the rules of the game, unfortunately they are learning in the hardest way, with their wallet.
Who might implement such suspensions? Even if buy or sell only suspensions are permitted which I do question then who might be the authority to put them in place?
The answer is of course the Regulator, in the case of a security based on the NYSE it would be the SEC. A brokerage or a cartel of brokerages and funds implementing a partial suspension that applies only to certain sections of the market would be an example of market manipulation.
First 1 minute of this interview is fairly informative, wonder how much of the same reasoning applies to IB/212 decisions - although what would be nice if we could just hear proper explanations from them rather than us having to speculate
Suspend trading for ALL parties.
Well done you have caught me on a technicality yes the exchanges can suspend trading. I see that you chose not to answer to the second part of the message regarding market manipulation and cartel activity though.
A brokerage or a cartel of brokerages and funds implementing a partial suspension that applies only to certain sections of the market would be an example of market manipulation.
I simply didn’t respond because I don’t have any evidences to confirm or disconfirm any market manipulation theory. Any thing without proofs is pure speculation.
I’m not IBKR, only they can explain their reasons.
Only thing that we know is the speculation on some stocks is hurting us due to the more pressure on trading systems, delaying the transactions or crashing the trading platforms.
We all appreciate that it’s IB that have put a stop to purchasing GME and AMC and it’s not Trading212’s fault.
The question is what’s being done to resolve this? Can Trading212 still claim to be democratising and disrupting the market when they aren’t seen to be standing up to market manipulation?
Ah yes the CEO of a brokerage would love to be caught stating inaccurate market knowledge on live TV… or maybe, maybe the things he said make sense to anyone who knows what settlement and clearing is, which I assume you do? And so know more than the CEO of a brokerage?
