Why can't they figure this out?

[Cardboard]

http://www.nytimes.com/2010/06/30/business/30circuit.html?partner=yahoofinance

 

It may be hard to pin point the exact cause of the flash crash with so many trades, but why is it so difficult with Washington Post, Citigroup and some others? Who is able to enter in the "system" and get executed such stupid trades on such large companies?

 

This is a crazy phenomenon which I don't recall seeing before on large caps. The only other time that I have seen such crazy trades was the day following the short ban or sometimes in after-hours trading.

 

It is completely discrediting the American stock market, creating fear, mistrust and dislocation. They need to find the cause and severely punished whoever is responsible.

 

Cardboard

[twacowfca]

http://www.nytimes.com/2010/06/30/business/30circuit.html?partner=yahoofinance

 

It may be hard to pin point the exact cause of the flash crash with so many trades, but why is it so difficult with Washington Post, Citigroup and some others? Who is able to enter in the "system" and get executed such stupid trades on such large companies?

 

This is a crazy phenomenon which I don't recall seeing before on large caps. The only other time that I have seen such crazy trades was the day following the short ban or sometimes in after-hours trading.

 

It is completely discrediting the American stock market, creating fear, mistrust and dislocation. They need to find the cause and severely punished whoever is responsible.

 

Cardboard

 

 

The decline of the role of the NYSE specialist explains most of this stuff.  In the good old days it was almost unheard of for a NYSE co to go no bid.

[Parsad]

I agree!  This whole thing really bothers me, yet none of the regulators, media, brokerages, etc. know what happened.  How scary is that?  Cheers!

[Buffeteer]

 

When 70% of the volume comes from the OTC market, its near impossible to figure out where it came from.

 

When there was rumors that Taleb's company had been involved and was pummelled by its stop-losses

it was truly the definition of irony that he would be hammered by 'black swan' event!

[Cardboard]

"Trading in the shares of Citigroup, one of the most heavily traded stocks in the United States, was paused for five minutes at 1:03 p.m. after an over-the-counter trade of about 8,821 shares was posted at a price of $3.3174, or 12.7 percent lower than the $3.80 price of the previous trade."

 

Unless you are refering to the flash crash, I have to disagree with the impossibility of getting the job done. This was a single trade for a sum of $29,263 or a tiny amount of shares and value for a company like Citigroup. Every trade is recorded and all they have to do is to find out who was the bid and ask on this one. What was their intention? How did they succeed executing such out of whack trade?

 

Cardboard

[Myth465]

It does make you think. There should be a fairly simple audit trail for this sort of thing.

[RRJ]

Anyone know if this has to do with the Supplemental Liquidity Provider program? I have a friend that tells me on good authority that the participants in this program can voluntarily suspend their participation, leaving the market open to sudden drops in liquidity, which led to the Flash Crash and this Citi anomaly.

 

Someone please tell me this is nonsense and Wall Street is not this stupid.  This is playing Russian roulette with the confidence in the markets.  This cannot be true.