Unusual Drop In Intel Due To Problems With Regulation NMS
TJM Investments Managing Director Tim Anderson told Benzinga that numerous people brought it to his attention when shares of Intel Corporation (NASDAQ: INTC) dropped from above the $32.50 level to $31.50 last Friday.
Anderson joined Benzinga’s #PreMarket Prep to explain why he thinks investors should ignore that movement in a normally thick stock with tons of volume.
"I don’t know what exchange that traded on," he said. "Clearly, it was very, very low volume."
He said he thinks that some people who sold the stock are going to have to complain to the exchange or whoever handled that order.
"It clearly went out as a market order at a very weird period of time where there just wasn’t a bid and hit a bid on some tertiary exchange somewhere that really shouldn’t have happened," Anderson said.
Very heavy volume in that 5 min plunge just before 10:30 am. Was that the low of the day?
— Timothy Anderson (@TJAnderson1) October 10, 2014
Looking at the one- or two-minute chart, Anderson said that fewer than 1,000 shares traded down.
"It’s a perfect example of a breakdown of Reg NMS," he said.
The Securities and Exchange Commission created the rules in Regulation NMS to make price execution more fair, according to Investopedia.
When asked if he felt the market is too fragmented, Anderson replied, "Yes, definitely."
"At one point in time, the regulators felt, well we don’t really need a primary market," he said, "you know, hopefully they’ll be taking a closer look at that going forward."
Anderson also talked about interest rates and the strength of the U.S. dollar.
Check out his full interview here:
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