http://www.bloomberg.com/news/2010-10-18/nyse-euronext-cancels-trades-of-s-p-500-etf-at-9-6-below-opening-price.html
I'm sure Homeland Security's new cyber security will fix that problem toot sweet.
I bet you can "Bank" on it
Regulators can add a faulty software update at NYSE Euronext’s electronic Arca stock market to the list of mishaps that have weighed on investor confidence.
“Something went wrong. The question is why,” said James Angel, a finance professor at Georgetown University in Washington. “For them to cancel the trades is probably causing heartburn in back offices across the country.”
The glitch in the fund with a market value of more than $80 billion comes as federal regulators are trying to prove U.S. exchanges still work after the May 6 crash that erased $862 billion of share value in 20 minutes
Yesterday’s mispricing “indicates a breakdown in market mechanisms,” Georgetown’s Angel said. “I hope the regulators are looking at it.”
Showing posts with label flash crash. Show all posts
Showing posts with label flash crash. Show all posts
Wednesday, October 20, 2010
Thursday, October 14, 2010
Flash Crash: Norwegians Convicted for Outwitting 'Trading Robots'
http://www.cnbc.com/id/39664612
They beat the system!
Rock on with your bad self Norway!
You just made "Heroic Folklore Status" as far as the small individual traders are concerned!
Not just in Norway, but here in America as well!
Two Norwegian day traders have been handed suspended prison sentences for market manipulation after outwitting the automated trading system of a big US broker.
The two men worked out how the computerized system would react to certain trading patterns – allowing them to influence the price of low-volume stocks.
The case, involving Timber Hill, a unit of US-based Interactive Brokers, comes amid growing scrutiny of automated trading systems after the so-called “flash crash” in May, when a single algorithm triggered a plunge in US stocks.
Svend Egil Larsen and Peder Veiby had won admiration from many Norwegians ahead of the court case for their apparent victory for man over machine.
Prosecutors said Mr Larsen and Mr Veiby “gave false and misleading signals about supply, demand and prices” by manipulating several Norwegian stocks through Timber Hill’s online trading platform.
Anders Brosveet, lawyer for Mr Veiby, acknowledged that his client had lea
They beat the system!
Rock on with your bad self Norway!
You just made "Heroic Folklore Status" as far as the small individual traders are concerned!
Not just in Norway, but here in America as well!
Two Norwegian day traders have been handed suspended prison sentences for market manipulation after outwitting the automated trading system of a big US broker.
The two men worked out how the computerized system would react to certain trading patterns – allowing them to influence the price of low-volume stocks.
The case, involving Timber Hill, a unit of US-based Interactive Brokers, comes amid growing scrutiny of automated trading systems after the so-called “flash crash” in May, when a single algorithm triggered a plunge in US stocks.
Svend Egil Larsen and Peder Veiby had won admiration from many Norwegians ahead of the court case for their apparent victory for man over machine.
Prosecutors said Mr Larsen and Mr Veiby “gave false and misleading signals about supply, demand and prices” by manipulating several Norwegian stocks through Timber Hill’s online trading platform.
Anders Brosveet, lawyer for Mr Veiby, acknowledged that his client had lea
Friday, October 1, 2010
Report: Algorithm Set Off 'Flash Crash' Amid Stressed Market
http://online.wsj.com/article/SB10001424052748703859204575525973854203534.html?mod=WSJ_hpp_LEADNewsCollection
What the SEC fails to report to you is that Algorithm trading is a very common use now by the Trade Industry. It's called HFT (high frequency trading). It's a market rig that makes money by creating illusion.
Computers are trading computers to make it look like there is liquidity creating volume of buys and sells. It should be against the law instead of widely used.
Federal regulators investigating the causes of the May 6 "flash crash" concluded a large trader's use of a computer trading system to sell futures contracts led to a rapid and sudden selling that triggered additional selloffs in an already unstable market
What the SEC fails to report to you is that Algorithm trading is a very common use now by the Trade Industry. It's called HFT (high frequency trading). It's a market rig that makes money by creating illusion.
Computers are trading computers to make it look like there is liquidity creating volume of buys and sells. It should be against the law instead of widely used.
Federal regulators investigating the causes of the May 6 "flash crash" concluded a large trader's use of a computer trading system to sell futures contracts led to a rapid and sudden selling that triggered additional selloffs in an already unstable market
Thursday, September 30, 2010
This Has To Be A Joke: SEC About To Blame Entire Flash Crash On Waddell And Reed's E-Mini Trades
http://www.zerohedge.com/article/has-be-joke-sec-about-blame-entire-flash-crash-waddell-and-reeds-e-mini-trades
The competency of the SEC is astounding and never ceases to amaze me.
They obviously don't give a damn if "The People" know that their bought off, and they're going to milk that cow as long as they can.
Bloomberg has just released something which if true, will wipe out every last ounce of credibility left in the market. As readers will recall, the initial scapegoat that CNBC and everyone else, who has no clue what really happens in the market decided to pin the flash crash on, was small Kansas-based trading firm Waddell & Reed, which traded a few extra contracts of E-Mini futures in the hours preceding the flash crash. Well, ladies and gentlemen, if this advance glance into what the SEC is about to disclose in its flash crash report is indeed valid, then the entire flash crash is about to be blamed on Waddell and Reed once again, with no mention of High Frequency Trading, or any of the other real culprits for the drop which wiped out $1 trillion in market cap, and the furthermore the report will have no policy recommendations.
The competency of the SEC is astounding and never ceases to amaze me.
They obviously don't give a damn if "The People" know that their bought off, and they're going to milk that cow as long as they can.
Bloomberg has just released something which if true, will wipe out every last ounce of credibility left in the market. As readers will recall, the initial scapegoat that CNBC and everyone else, who has no clue what really happens in the market decided to pin the flash crash on, was small Kansas-based trading firm Waddell & Reed, which traded a few extra contracts of E-Mini futures in the hours preceding the flash crash. Well, ladies and gentlemen, if this advance glance into what the SEC is about to disclose in its flash crash report is indeed valid, then the entire flash crash is about to be blamed on Waddell and Reed once again, with no mention of High Frequency Trading, or any of the other real culprits for the drop which wiped out $1 trillion in market cap, and the furthermore the report will have no policy recommendations.
Wednesday, September 29, 2010
Investors, Regulators Laid Path to 'Flash Crash'
http://online.wsj.com/article/SB1000...LEFTTopStories
Has anyone who makes or breaks set in place regulations ever thought about the future consequences of what they're doing? Because it doesn't seem to me as if the thought has ever entered their mind.
As the Securities and Exchange Commission finalizes its report on the May 6 "flash crash," it is being forced to confront the fallout of its own decisions—which Wall Street sought and cheered—that ushered in an era of fast trading dispersed across dozens of venues.
But the flash crash, he says, shows there have been "huge, unintended consequences."
Has anyone who makes or breaks set in place regulations ever thought about the future consequences of what they're doing? Because it doesn't seem to me as if the thought has ever entered their mind.
As the Securities and Exchange Commission finalizes its report on the May 6 "flash crash," it is being forced to confront the fallout of its own decisions—which Wall Street sought and cheered—that ushered in an era of fast trading dispersed across dozens of venues.
But the flash crash, he says, shows there have been "huge, unintended consequences."
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