huffingtonpost.com— A mistake in the listed value of the stock of Procter & Gamble, CNN Money reports, may have also helped fuel the massive plunge in stocks
May 6, 2010View in Crawl 4
mistakes like this don't happen just by one guy. If so , then some dam person who wants to bring down wallstreet could? Laughable and scary at the same time. I have another theory...this was a planned event by the big banks to cower the Senate into voting against reform and break up.
Was not a "glitch" or a "fat-fingered trader". We rely on high frequency trading algorithms to provide liquidity to the markets. There was massive volatility swing following a 3%ish sell off that triggered a massive carry-trade covering i.e. people who were short the Yen due to borrowing it to fund investments were suddenly buying Yen to get out of their positions and cover their leverage. This volatility caused high frequency quant trading funds that provide over 2/3rds of the markets liquidity in every asset shut themselves down (they are short volatility). Once these were taken off line, liquidity collapsed and the carry trade de-riskers took over. The big story here is that this basically proves how much of this recent "rally" was purely liquidity driven froth(low interest rates/quantitative easing). Someone stepped in and started buying. It isn't clear who it was. Some have suggested the fed or the major banks. Others have mentioned the high frequency trading funds came back online.
Citygroups has. And the computer software banks use only has this security trigger for share prices, not qtty of shares. A citygroup analyst, managing all the banks P&G shares, could easily make this mistake with shares qtty.
buckrogers1965May 7, 2010
Right meow?
skiingpowder10May 7, 2010
mistakes like this don't happen just by one guy. If so , then some dam person who wants to bring down wallstreet could? Laughable and scary at the same time. I have another theory...this was a planned event by the big banks to cower the Senate into voting against reform and break up.
arkons24May 7, 2010
Was not a "glitch" or a "fat-fingered trader". We rely on high frequency trading algorithms to provide liquidity to the markets. There was massive volatility swing following a 3%ish sell off that triggered a massive carry-trade covering i.e. people who were short the Yen due to borrowing it to fund investments were suddenly buying Yen to get out of their positions and cover their leverage. This volatility caused high frequency quant trading funds that provide over 2/3rds of the markets liquidity in every asset shut themselves down (they are short volatility). Once these were taken off line, liquidity collapsed and the carry trade de-riskers took over. The big story here is that this basically proves how much of this recent "rally" was purely liquidity driven froth(low interest rates/quantitative easing). Someone stepped in and started buying. It isn't clear who it was. Some have suggested the fed or the major banks. Others have mentioned the high frequency trading funds came back online.
kibblesnbittsMay 7, 2010
Stop Loss orders.
manicleekMay 7, 2010
I'm with you ManoWar, made a killing on the euro this week, and on the GBP this morning
Closed AccountMay 7, 2010
Citygroups has. And the computer software banks use only has this security trigger for share prices, not qtty of shares. A citygroup analyst, managing all the banks P&G shares, could easily make this mistake with shares qtty.
mweatherMay 7, 2010
Yes, we lost billions, then regained them.