‘t Break The Market The First Day On The Job

Imagine this: you’re driving to the office the very first day on the job.  As you casually hang a right into the parking lot, you begin thinking of how you are going to leave a stellar first impression on your co-workers and management, since you know that first impressions mean everything.  Pulling into the first spot you see right in front of the entrance, you jump the curb and slam into the front of the building as your car bursts into flames while your hood flattens the reception desk against the back of the wall. Now imagine this is how … Read more

‘s Changed Since the Flash Crash

Summary Report of the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues,February 18, 2011Do you feel lucky? Well… do ya?It has been nearly one year since the infamous Flash Crash of May 6, 2010 exposed the vulnerabilities in our USmarket structure.Steady and controlled selling gave way to a dangerous and precipitous plunge, as algorithmic proprietary traderstripped over each other to see who could hit the next bid the fastest. After a pause in one market center, the algo-bots raced to see who could take offers and cover shorts the fastest, and the 1,000 plus DJIA drop reversed just asfast. Phillip Morris fell from nearly $49 to … Read more