2010 will be one for the record books. A huge bull move pushed the Dow Jones Industrial average above its September 12th, 2008 high prior to the Lehman Brothers meltdown. Huge amounts of Federal aid washed into the market to bailout failing financial and other institutions. This influx of capital combined with surprisingly solid corporate.. Read more
To say that 2010 was a tumultuous year for the stock market is to be both astute and forgetful. To the first point, anybody who felt the rollercoaster rush of the Flash Crash of 2010 was given a too-close-for-comfort reminder of the inherent uncertainties in the financial sector. To the latter point, there have been.. Read more
One of the most interesting developments in the SEC’s determinations of the probable causes of the stock market “Flash Crash” of 2010 was that stub quotes played a crucial role in the day’s tumultuous events. Not as a cause, but as an exacerbating factor. Now the exchanges are asking for SEC regulations that will effectively.. Read more
Those quick to blame algorithmic trading and HFTs for the Flash Crash of 2010 could stand to take a look at the SEC’s recent report on the events of May 6th. The October 1 report suggests that a single sale of $4 billion of futures contracts from the Kansas based mutual fund company Waddell &.. Read more
The regulatory landscape has changed since the May 6th flash crash. In an effort to prevent a similar occurrence, new circuit breaker type trading halts have been instituted. These circuit breakers are designed to stop trading in any individual security whenever a single trade moves the price by at least 10% from its so-called fair.. Read more
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