NY Times has a piece about a mini flash crash in Progress Energy.
http://www.nytimes.com/2010/11/09/business/09flash.html?_r=1&ref=business
I will say this about HFT.
When High Frequency Trading is moving or energizing the engine of the stock market it does add liquidity. The Problem I have is when High Frequency Trading itself becomes the engine. This is a problem when a sudden shock hits the engine and the liquidity disappears. This is what happened on May 6th more or less.
Every one says circuit breakers can do the trick. I doubt it. These rarely work in the sense that what ever needs to happen will happen eventually. You can't stop a market from going to a point where it deems is fair value.
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