flash crash

“The new British government under May appears to have chosen an economic course which could bear substantial risks.”
Keep Reading: 5 Money Scams to Avoid This Year For example, Galka said hedge funds that invest in pharmaceutical companies
This week's announcement by Goldman Sachs to launch a new Exchange-Traded Fund (ETF) based on their popular hedge fund investing
But she stops well short of Bernie Sanders' call to break up the banks.
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.
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.
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.
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 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.
LONDON — A futures trader was arrested in Britain over allegations that his manipulation of trades helped prompt the May
Traditional variables taken into consideration by investors have included growth prospects, competition, recent earnings, dividends, long-term volatility and the like.
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.
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.
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.
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.
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.