Monday, October 18, 2010

Another strange move in NYSE

Take a look at this explanation in Bloomberg on what happened today in the SPY. Some important paragraphs:

"Data published by the electronic venue at 4:15 p.m. New York time showed the SPDR S&P 500 ETF Trust at $106.46 compared with its opening price of $117.74. The apparent plunge in price involved 7.2 million shares in the closing auction on NYSE Arca, according to data compiled by Bloomberg at 4:30 p.m."


"The 104-page study released Oct. 1 said trading software known as an algorithm linked the rate at which it traded the E- Mini contract to overall market volume. The initial sales spurred a flurry of buying and selling among high-frequency traders, which in turn led the algorithm to sell faster."





Another proof of the weak controls in this market.

May be today we have a new millionaire...

Nyse breaks trades of S&P 500 ETF showing 9,6% plunge


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