The Securities and Exchange Commission today brought down the banhammer on “stub quotes,” market orders for a stock that are wildly different from the most recent price.
Why not allow market makers to put in placeholder bids and offers for stocks that are as high as $1,000 a share or as low as a penny Read More
Still in Kansas
The Wall Street Journal has had not one but two beautiful articles about the Midwestern flash crash super-villains in the last 24 hours. The first, by E.S. Browning and Jenny Strasburg, digs into the gentlemen behind the $27 billion Asset Strategy Fund at Waddell & Reed, who’ve been fingered as the mysterious culprits Read More
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 liquidity 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 a source Read More
The May 6 flash crash rattled the stock markets, prompting investors to make large-scale withdrawals from mutual funds and other vehicles and creating the impression that exchanges are dominated by unpredictable, rapacious computer traders. In the months since then, more than a dozen individual stocks have experienced near-instantaneous spikes or dives. Each new bizarre event 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 safety 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