Posts Tagged ‘flash crash’

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    Stock Markets: High Speed Trading

    Apr 4, 13 • 163 Views • Businesses, Demand, Supply, and Markets, Economic Growth, Environment, Regulation, Thinking EconomicallyNo Comments

    High frequency trading might be an elephant in the closet. Representing perhaps 51% of all daily trading volume, speedy trading hits the headlines only when something goes wrong. But since I’ve been reading Frank Partnoy’s Wait: The Art and

  • Stock Markets: Should Wall Street Slow Down?

    Aug 2, 12 • 182 Views • Behavioral Economics, Financial Markets, RegulationNo Comments

    Soon after the New York Stock Exchange (NYSE) opened yesterday, the prices of more than 140 securities moved irrationally. Some were up 150%. Though no one yet has said why, we do know that fast trading computer programs—high-frequency trades—were the

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    Preventing a ‘Flash Crash’

    Aug 21, 10 • 195 Views • Businesses, International Trade and Finance, RegulationNo Comments

    Do you remember the ‘flash crash‘? On Thursday, May 6, for close to 20 minutes, markets everywhere wildly fluctuated.  It began at 2:23 when certain stock prices started moving oddly. With Apple trading at approximately $250 a share, at 2:44,

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    Orderly Markets

    May 14, 10 • 201 Views • Demand, Supply, and Markets, Financial MarketsNo Comments

    No one has figured out the cause of the “flash crash”. Some background information might help, though, when we try to understand what happened. On May 6th, the Dow Jones Industrial Average plunged close to 1000 points, then made up some of