There was a NASDAQ whoopsy today:
Computer breakdowns shook American equity markets again today as malfunctioning software that feeds data between exchanges prompted Nasdaq Stock Market to halt trading in thousands of stocks and options.
Trading will resume in some stocks at about 2:45 p.m. with the remainder returning by 3:10 p.m. New York time, the company said in a statement on its website.
…
The action froze stocks both on Nasdaq’s platforms and dozens of other markets around the country that trade securities it lists. Companies from Bats Global Markets Inc. in Lenexa, Kansas, to Jersey City, New Jersey-based Direct Edge Holdings published notices saying they were adopting Nasdaq’s halt.
I have no idea why trading in these securities at other exchanges was halted – the BATS notice doesn’t provide any information, nor does the Direct Edge website. What’s the point of a network if a single-point failure can bring down the system?
I haven’t seen anything to indicate that this problem is affecting the lunatic decision to move towards centralized counterparties for derivatives and repos, either.
The SEC is determined to enhance the safeguards necessary for justifying increased regulation:
The continuous and orderly functioning of the securities markets is critically important to the health of our financial system and the confidence of investors. Today’s interruption in trading, while resolved before the end of the day, was nonetheless serious and should reinforce our collective commitment to addressing technological vulnerabilities of exchanges and other market participants. The Commission is determined to enhance the safeguards necessary for strong market systems. As one step, I will work to advance rules that the Commission proposed earlier this year regarding new standards for the trading and other systems that are central to the integrity of our markets. I also will shortly convene a meeting of the leaders of the exchanges and other major market participants to accelerate ongoing efforts to further strengthen our markets.
The SEC is making some cosmetic changes to ethics guidelines:
Hundreds of U.S. Securities and Exchange Commission lawyers and examiners face new obstacles to cashing in on their agency experience under an expanded ethics rule to take effect in January.
The change targets the practice of regulators moving to jobs at law firms and investment banks where they capitalize on their SEC relationships. The ethics rule, which previously affected only the most senior officers, will now be applied to everyone who earns more than $155,440 a year, according to a copy of an agency announcement.
The employees will be banned from contacting old colleagues for one year after leaving the SEC when the policy becomes effective in January. Commissioners and division directors have long faced such limits.
The Canadian preferred share market was on fire today, with PerpetualDiscounts winning 78bp, FixedResets up 72bp and DeemedRetractibles gaining 26bp. The Performance Highlights table is suitably enormous, with Enbridge FixedResets notable amongst the many winners. Volume was extremely high.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.6381 % | 2,626.4 |
| FixedFloater | 4.25 % | 3.55 % | 34,437 | 18.24 | 1 | 0.0000 % | 3,906.6 |
| Floater | 2.56 % | 2.91 % | 70,223 | 19.92 | 5 | 0.6381 % | 2,835.7 |
| OpRet | 4.69 % | 4.44 % | 72,942 | 2.80 | 3 | -0.3505 % | 2,591.3 |
| SplitShare | 4.75 % | 4.40 % | 55,647 | 3.85 | 6 | 0.1496 % | 2,941.6 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3505 % | 2,369.4 |
| Perpetual-Premium | 5.81 % | 5.86 % | 119,906 | 14.06 | 12 | 0.3008 % | 2,229.8 |
| Perpetual-Discount | 5.71 % | 5.86 % | 160,522 | 14.08 | 25 | 0.7814 % | 2,258.8 |
| FixedReset | 5.03 % | 3.85 % | 246,020 | 3.89 | 84 | 0.7226 % | 2,428.2 |
| Deemed-Retractible | 5.28 % | 5.32 % | 193,984 | 6.94 | 43 | 0.2576 % | 2,294.3 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| MFC.PR.F | FixedReset | -1.36 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.75 Bid-YTW : 5.12 % |
| POW.PR.G | Perpetual-Premium | 1.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 23.79 Evaluated at bid price : 24.16 Bid-YTW : 5.86 % |
| GWO.PR.F | Deemed-Retractible | 1.00 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 5.97 % |
| PWF.PR.F | Perpetual-Discount | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.55 Evaluated at bid price : 22.81 Bid-YTW : 5.80 % |
| CM.PR.G | Perpetual-Premium | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 24.16 Evaluated at bid price : 24.45 Bid-YTW : 5.57 % |
| RY.PR.C | Deemed-Retractible | 1.06 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.83 Bid-YTW : 5.32 % |
| BAM.PF.B | FixedReset | 1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.14 Evaluated at bid price : 22.80 Bid-YTW : 4.94 % |
| FTS.PR.J | Perpetual-Discount | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 21.32 Evaluated at bid price : 21.62 Bid-YTW : 5.50 % |
| HSE.PR.A | FixedReset | 1.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.54 Evaluated at bid price : 23.08 Bid-YTW : 4.16 % |
| MFC.PR.I | FixedReset | 1.19 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-09-19 Maturity Price : 25.00 Evaluated at bid price : 25.45 Bid-YTW : 3.85 % |
| POW.PR.D | Perpetual-Discount | 1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 21.63 Evaluated at bid price : 21.63 Bid-YTW : 5.86 % |
| IFC.PR.C | FixedReset | 1.23 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.47 Bid-YTW : 3.78 % |
| POW.PR.A | Perpetual-Discount | 1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 23.74 Evaluated at bid price : 24.05 Bid-YTW : 5.89 % |
| PWF.PR.S | Perpetual-Discount | 1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 21.97 Evaluated at bid price : 22.25 Bid-YTW : 5.43 % |
| BAM.PF.A | FixedReset | 1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 23.00 Evaluated at bid price : 24.57 Bid-YTW : 4.83 % |
| BAM.PR.K | Floater | 1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 18.03 Evaluated at bid price : 18.03 Bid-YTW : 2.93 % |
| ENB.PR.F | FixedReset | 1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.51 Evaluated at bid price : 23.40 Bid-YTW : 4.62 % |
| PWF.PR.L | Perpetual-Discount | 1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 21.88 Evaluated at bid price : 21.88 Bid-YTW : 5.89 % |
| IFC.PR.A | FixedReset | 1.63 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.90 Bid-YTW : 4.05 % |
| TRP.PR.B | FixedReset | 1.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 21.21 Evaluated at bid price : 21.21 Bid-YTW : 3.98 % |
| BAM.PR.C | Floater | 1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 18.03 Evaluated at bid price : 18.03 Bid-YTW : 2.93 % |
| TRP.PR.D | FixedReset | 1.87 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.94 Evaluated at bid price : 24.50 Bid-YTW : 4.28 % |
| ENB.PR.Y | FixedReset | 1.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.20 Evaluated at bid price : 22.94 Bid-YTW : 4.60 % |
| BNS.PR.Z | FixedReset | 1.95 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.53 Bid-YTW : 4.33 % |
| FTS.PR.H | FixedReset | 2.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 20.61 Evaluated at bid price : 20.61 Bid-YTW : 4.27 % |
| TD.PR.S | FixedReset | 2.05 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.39 Bid-YTW : 3.83 % |
| SLF.PR.G | FixedReset | 2.12 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.67 Bid-YTW : 4.72 % |
| CU.PR.E | Perpetual-Discount | 2.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.11 Evaluated at bid price : 22.40 Bid-YTW : 5.48 % |
| BAM.PR.T | FixedReset | 2.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.60 Evaluated at bid price : 23.40 Bid-YTW : 4.65 % |
| CU.PR.D | Perpetual-Discount | 2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.03 Evaluated at bid price : 22.31 Bid-YTW : 5.50 % |
| CU.PR.G | Perpetual-Discount | 2.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 20.81 Evaluated at bid price : 20.81 Bid-YTW : 5.43 % |
| PWF.PR.P | FixedReset | 2.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 23.02 Evaluated at bid price : 23.90 Bid-YTW : 3.81 % |
| ENB.PR.T | FixedReset | 2.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.42 Evaluated at bid price : 23.33 Bid-YTW : 4.60 % |
| ENB.PR.H | FixedReset | 2.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.10 Evaluated at bid price : 22.70 Bid-YTW : 4.46 % |
| ENB.PR.P | FixedReset | 2.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.44 Evaluated at bid price : 23.35 Bid-YTW : 4.61 % |
| ENB.PR.B | FixedReset | 2.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.74 Evaluated at bid price : 23.70 Bid-YTW : 4.49 % |
| ENB.PR.N | FixedReset | 3.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.67 Evaluated at bid price : 23.80 Bid-YTW : 4.62 % |
| CIU.PR.C | FixedReset | 3.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.31 Evaluated at bid price : 22.75 Bid-YTW : 3.71 % |
| GWO.PR.N | FixedReset | 3.25 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.55 Bid-YTW : 4.56 % |
| CU.PR.F | Perpetual-Discount | 4.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 21.02 Evaluated at bid price : 21.02 Bid-YTW : 5.38 % |
| ENB.PR.D | FixedReset | 5.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-08-22 Maturity Price : 22.49 Evaluated at bid price : 23.34 Bid-YTW : 4.53 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| RY.PR.Y | FixedReset | 344,704 | Scotia crossed three blocks, two of 25,000 and one of 20,000, all at 26.00. RBC crossed 250,000 at the same price. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-11-24 Maturity Price : 25.00 Evaluated at bid price : 26.00 Bid-YTW : 2.84 % |
| TD.PR.T | FixedReset | 145,174 | Nesbitt crossed blocks of 100,000 and 30,000, both at 25.05. YTW SCENARIO Maturity Type : Call Maturity Date : 2018-07-31 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 2.51 % |
| BNS.PR.T | FixedReset | 118,948 | RBC crossed three blocks, 34,800 shares, 35,500 and 29,300, all at 25.70. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-04-25 Maturity Price : 25.00 Evaluated at bid price : 25.62 Bid-YTW : 3.03 % |
| GWO.PR.H | Deemed-Retractible | 74,852 | TD crossed 50,000 at 21.43. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.51 Bid-YTW : 6.75 % |
| TD.PR.O | Deemed-Retractible | 63,825 | Nesbitt crossed 50,000 at 24.50. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.45 Bid-YTW : 5.25 % |
| TD.PR.Y | FixedReset | 43,160 | Desjardins crossed 40,000 at 24.93. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.86 Bid-YTW : 3.82 % |
| There were 66 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PR.T | FixedReset | Quote: 23.40 – 24.06 Spot Rate : 0.6600 Average : 0.4428 YTW SCENARIO |
| CU.PR.E | Perpetual-Discount | Quote: 22.40 – 22.87 Spot Rate : 0.4700 Average : 0.2932 YTW SCENARIO |
| CU.PR.C | FixedReset | Quote: 24.85 – 25.20 Spot Rate : 0.3500 Average : 0.2243 YTW SCENARIO |
| HSB.PR.D | Deemed-Retractible | Quote: 24.61 – 24.95 Spot Rate : 0.3400 Average : 0.2400 YTW SCENARIO |
| BAM.PR.R | FixedReset | Quote: 24.87 – 25.23 Spot Rate : 0.3600 Average : 0.2637 YTW SCENARIO |
| BNS.PR.R | FixedReset | Quote: 24.95 – 25.20 Spot Rate : 0.2500 Average : 0.1561 YTW SCENARIO |