Yeah on the price action that will happen on disallowed with Arr . Im not sure if it will go through a price adjustment before opening by the Australian stock exchange ?
Its interesting this aspect as to the rulings of the exchange .Been trying find if it will or not but because such a difference in price im swaying the stock will go under a price adjustment before opening .
What's swaying me that way is such a big price differential with the asx and the other exchanges .
Investopedia had this in abrigtuers .
Something is going happen very fast at opening just what i have no idea as high frequency trading short trades etc will have highlighted this big differences with the investment houses and their big wiz bang computers for this type of opportunity which is more than my head can get around with rulings etc to cross trades across exchanges etc
Perhaps someone has better knowledge or has come across it before where they have taken an interest in the rulings and opportunities of the market
Examples of Arbitrageur Plays
Let's look at an example of the work of an arbitrageur. Suppose the stock of Company X is trading at $20 on the New York Stock Exchange (NYSE) while, at the same time, it is trading for the equivalent of $20.05 on the London Stock Exchange (LSE). A trader can buy the stock on the NYSE and immediately sell the same shares on the LSE, earning a total profit of 5 cents per share, less any trading costs. The trader exploits the arbitrage opportunity until the specialists on the NYSE run out of inventory of Company X's stock or until the NYSE or LSE adjust their prices to wipe out the opportunity.
