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Flash Crash

Aggressive HFT and Institutional Trading Activity - Who Leads Market Crashes?

Irene Aldridge | Posted 09.16.2015 | Business
Irene Aldridge

Most recent routs in the U.S. financial markets have prompted an outpouring of angst. Detractors of high-frequency trading (HFT) were particularly up in arms about the market downturn, which many of them blamed squarely on manipulation by HFT.

Legal Confusion as to Spoofing

Andrew Verstein | Posted 05.12.2015 | Business
Andrew Verstein

Five years and a week ago, the market suffered one of the most violent drops and bizarre recoveries. Just a few short weeks ago Navinder Singh Sarao was accused of having helped cause it.

Five Years Later, Flash Crash Still Shrouded in Mystery

Dennis M. Kelleher | Posted 05.06.2015 | Politics
Dennis M. Kelleher

Although there were numerous investigations into the supposed causes of the Flash Crash, including by Congress, the Securities and Exchange Commission and the Commodities Futures Trading Commission, none have been very convincing. Those lingering doubts have now been disturbingly confirmed.

Celebrating the Flash Crash with a Wall Street Sales Tax

Dean Baker | Posted 05.04.2015 | Business
Dean Baker

For those who don't remember, the Flash Crash was when the stock market lost almost nine percent of its value from its opening level, with most of this decline occurring in a five-minute period. The market quickly recovered most of this loss. But the crash did reveal something extraordinary.

The SEC, CFTC and the Real-Time Risks in Today's Markets

Irene Aldridge | Posted 06.24.2015 | Business
Irene Aldridge

The new revelations surrounding the Flash Crash of May 6, 2010, once again brought to light an undeniable fact: U.S. regulators desperately need to boost their real-time surveillance capabilities.

'Flash Crash' Trader Charged With Manipulation

New York Times | Posted 04.21.2015 | Business

LONDON — A futures trader was arrested in Britain over allegations that his manipulation of trades helped prompt the May 2010 “flash crash,” whe...

Tracking Aggressive High-Frequency Traders and Flash Crashes in Stocks

Irene Aldridge | Posted 03.17.2015 | Business
Irene Aldridge

Traditional variables taken into consideration by investors have included growth prospects, competition, recent earnings, dividends, long-term volatility and the like.

Intraday Risk and Portfolio Selection

Irene Aldridge | Posted 03.10.2015 | Business
Irene Aldridge

At this point in financial innovation, no savvy portfolio manager can afford to ignore intraday risk, and, instead, needs to make it an integral part of his portfolio selection model.

Michael Lewis' Flash Boys

Robert Zevin | Posted 09.01.2014 | Business
Robert Zevin

The real value of the book is that its detailed description of this particular scam provides a universal blueprint of the way all such scams work on Wall Street, throughout the financial industry.

Flashback to Black Monday

John Bates | Posted 07.23.2014 | Technology
John Bates

Regulators and other agencies need systems that are not only as fast as HFT trading platforms but are also smarter, sniffing out and alerting the authorities as and when something anomalous is happening rather than after the fact.

Derailing the High-Speed Trading Bullet Train Before It Crashes Our Economy

Sarah Anderson | Posted 06.30.2014 | Politics
Sarah Anderson

On May 6, 2010, the Dow Jones Industrial Average suffered its fastest nosedive ever. What happened? What's clear is that high-frequency trader accelerated the free fall by withdrawing from the market en masse. Four years after they caused the "Flash Crash," those speed demons still rule our financial markets.

April Showers Hit Markets: Bring an Umbrella to Trade

Terry Connelly | Posted 06.11.2014 | Business
Terry Connelly

Forces at work from Tokyo to Kiev have been roiling the U.S. stock market for a couple of week. But the financial sushi that is now on the menu in Japan, and Russia's "Crimea of the Century" are only part of the story.

Flash Boys Puts a Flashlight on Dark, Predatory HFT Trading

Dennis M. Kelleher | Posted 06.03.2014 | Business
Dennis M. Kelleher

The industry counters by denying these facts and boldly claiming that they provide liquidity and lower costs, but it has been demonstrated that HFT is more often a liquidity taker than a liquidity provider and, if anything, raises the costs of trading.

The Real Problem With the Twitter HackCrash

Mark Cuban | Posted 07.02.2013 | Business
Mark Cuban

Billions of dollars are being invested to make trading without humans faster, cheaper, smarter. The problem is that no matter how smart you make machines, they will never be smart enough in our lifetime to detect all levels of deceit and fraud. Particularly online.

Mark Gongloff

Twitter Flash Crash Hints At Deeper Market Problems | Mark Gongloff | Posted 04.23.2013 | Business

Twitter may have caused a flash crash, but the problem is not Twitter's. Any market so vulnerable to an errant tweet probably has bigger problems. ...

SEC Ignoring High-Speed Trading Fraud?

Mark Gongloff | Posted 11.24.2012 | Business
Mark Gongloff

Having the Securities and Exchange Commission police high-speed trading is like pitting Barney Fife against Michael Corleone: The odds are not in its favor.

What Business Is Wall Street In?

Mark Cuban | Posted 11.21.2012 | Small Business
Mark Cuban

Wall Street is no longer serving the purpose that it was designed to. Over just the past five years, the market has changed, with individual stocks becoming pawns in a much bigger game that I feel increasingly less comfortable playing.

Stock Market Computer Glitch Plenty to Worry About

Ted Kaufman | Posted 08.13.2012 | Business
Ted Kaufman

The markets don't belong only to people like Mr. Joyce; they should and must belong as well to individual investors. Congress and the regulators must recognize that action is long overdue.

Knight Capital Debacle Screams for Transaction Tax Now

Daniel Dicker | Posted 10.09.2012 | Business
Daniel Dicker

Our stock markets have been hijacked and are coming apart, unsafe at any speed for any investor. That's the message that the $440 million scandal at Knight Capital Group is telling us.

Knight Falls Down in Its Heraldic Duties

John Bates | Posted 10.09.2012 | Business
John Bates

They want to think that machines are biddable and programs run smoothly. But with traders and market makers creating and deploying new systems and algorithms constantly, the danger of something going wrong is inevitable.

Must-Have New High-Speed Trading Tool: Drones

Mark Gongloff | Posted 10.07.2012 | Business
Mark Gongloff

Drones: They're not just for killing any more. They're not just for killing people, I mean. Soon they will also be for killing your money, in the stock market.

Wall Street Robots Have Taken Over The Market, Horrifying GIF Shows

Mark Gongloff | Posted 10.07.2012 | Business
Mark Gongloff

This is what it looks like when the robots take over the stock market.

Struggling Company's CEO: 'Clearly We're Not Happy With How It Played Out'

Reuters | Posted 10.06.2012 | Business

Aug 6 (Reuters) - The rescue deal that Knight Capital struck with a group of investors was "absolutely" the best it could have done, Chief Executiv...

Brace Yourself For More Knightmares

Mark Gongloff | Posted 10.02.2012 | Business
Mark Gongloff

Maybe this is the fastest way to get high-frequency trading robots to stop ruining our stock market: Have them destroy each and every trading company that operates them.

'Knight'mare Grows With Huge Loss

Reuters | Posted 10.02.2012 | Business

(Corrects third paragraph to say stock hit a 13-year low, not all-time low) * Knight CEO says firm has excess capital *...