Gary Gensler, the chairman of the Commodity Futures Trading Commission, today described potential regulatory responses that would seek to prevent another market-shaking event like the May 6 flash crash, during which the Dow Jones Industrial Average lost nearly 1,000 points only to bounce back sharply within a roughly 20-minute span.
Gensler’s remarks follow Read More
Well, the Securities and Exchange Commission and the Commodities Futures Trading Commission have released their joint report on the so-called “flash crash” of May 6.
The official report asserts that the crash wasn’t the result of market manipulation — a view the lead SEC investigator had previously expressed. According to regulators, falling Read More
An investigation by the Securities and Exchange Commission and Commodity Futures Trading Commission has revealed that a single trade by asset manager and financial planner Waddell & Reed helped spark the May 6 “flash crash,” during which the Dow Jones Industrial Average lost around 700 points within minutes, Reuters reports.
Citing Read More
Shares in Apple Computer experienced two sharp downward spikes today. But the price action is very different from what we saw yesterday with Progress Energy. Progress’ shares dropped 90 percent almost instantaneously. Even with today’s downward spikes, Apple’s trading between $275.00 and $291.77. It’s not exactly like the floor fell through.
So, is it Read More
Securities and Exchange Commission chief Mary Schapiro says that her agency’s report on the May 6 Flash Crash will show that regulators have a “very deep understanding” of how the exchanges work, Reuters reports.
Schapiro said she expects the SEC to release the report in the next few days. Public confidence in the Read More
We have another mini flash crash today. This time the unusual trading activity takes place in shares of Progress Energy (PGN), which today plummeted to a low of $4.57 and are now trading in the $44.50 range.
Today’s mini crash follows a similar event in shares of Nucor that happened two weeks ago. It Read More
Nanex, the electronic-trading research firm that has been providing much of the analysis of the May 6 “Flash Crash,” says that a few trading firms may have intentionally caused the massive selloff. This assessment contrasts mightily what Gregg Berman, head Flash Crash investigator for the Securities and Exchange Commission, said last week. Read More
Excitable technophobes and high-finance conspiracy theorists will be disappointed to find out that the May 6 “flash crash” was not caused by a shadowy collective of trader-terrorists bent on financial armageddon.
Instead, Gregg E. Berman, who’s heading up the Securities and Exchange Commission’s investigation into the crash, tells The New York Times that Read More
Shares of steel company and oddly xenophobic website purveyor Nucor halted trading around midday after the stock abruptly dropped from the $40 range to the 1-cent range, triggering a circuit-breaker mechanism.
Apparently some joker put in an order for 100 Nucor shares at a penny each at 11:52, a steep discount Read More
Small-time proprietary trading firm Trillium Brokerage Services is ponying up $2.3 million in fines related to high-frequency trading antics it engaged in in 2006, the Financial Times reports, citing people familiar with the situation.
Trillium faces enforcement action by the Financial Indusry Regulatory Association (Finra) because of a practice known as “layering,” wherein Read More