NYSE & NASDAQ To Eliminate Stop-Loss Orders & GTC’s (updated 12-11-15)

 

The New York Stock Exchange is joining the NASDAQ in ceasing to allow investors to use good-til-cancelled (GTC) orders and stop-loss orders on their stock trades, beginning February 26, 2016. (See MarketWatch article from November 20, 2015.)

I don’t know the real reason that they’re eliminating stop-losses and gtc’s; the news accounts are vague in that regard. It would not be unusual for the real reason to remain private. Maybe it’s about cost, or technology, or manpower. I know that when groups of people make decisions, whether it’s corporate leadership, church elders, POTUS or parents, they deliver the news in the most palatable way, without necessarily discussing the real motivation behind the decisions.

Individual investment firms — e.g. Morgan Stanley, E*Trade, etc. — will be able to continue facilitating stop-loss orders and/or gtc’s, because they can put your trades through many hundreds of market makers who will accept stop-losses and gtc’s.

I’ll update this post with new facts, as they arise.

Feel free to contact me with questions/comments about other aspects of stock investing: research@goodfellowllc.com.

 

Crista Huff

President

Goodfellow LLC

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