Flash crash

(Still) Deconstructing the Flash Crash

As Navinder Sarao fights extradition to the US, a new research report tries to pin down the reason as to why the Flash Crash happened. In the end, though, we still only have theories.

Letting the CAT Out of the Bag

Thomas Sporkin and Timothy Coley lay out the business and regulatory arguments in favor of implementing the Consolidated Audit Trail in the US.

GreySpark Study Yields Pre-Trade Risk Best Practices

Recently published research from London-based capital markets consultancy GreySpark Partners has yielded a number of best practices designed to help sell-side firms manage a range of risks associated with their electronic trading activities.

James Rundle: Imperfect Solutions

Most Western exchanges have implemented safety measures to mitigate share-price swings, but others are beginning to experience the algorithmic troubles that brought trading firms to their knees in recent years. Kill switches and circuit breakers don’t…

Risk Management a Challenge When Algos Go Rogue

In an article published in May, Waters explored the problematic task of performing market surveillance in automated, high-frequency trading environments. Another challenging area for algorithmic trading is that of risk management, when questions of risk…

NYSE Retiring LRP Ahead of Limit Measures

The New York Stock Exchange has filed a plan to withdraw its Liquidity Replenishment Points program (LRP), a way of halting momentum in volatile stocks, with the US Securities and Exchange Commission (SEC).

Circuit Breakers Adequate for Flash-Crash Prevention

A recent report by London-based consultancy GreySpark Partners has found that circuit breakers and venue controls on algorithms should be sufficient measures to control aberrant behavior related to algorithmic trading, without a need for further…

James Rundle: That Golden Touch

The data jungle of modern trading may be confusing, says James, but the UK’s Financial Services Authority is certainly going out with a bang after slamming a complex market manipulation scheme, mirroring wider efforts among national cops to become tech…

Congressman Lobbies SEC for HFT Crackdown

Representative Ed Markey (D-Mass.) has written to the Securities and Exchange Commission (SEC), advising it to curb the practice of high-frequency trading (HFT).

MEP Says No to Minimum Resting Times

Kay Swinburne, member of the EU's Economic and Monetary Affairs Committee, believes minimum resting times for orders will not make it into the final drafting of the second Markets in Financial Instruments Directive (Mifid II).

ASIC Considers Kill Switch Introduction

The Australian Securities & Investments Commission (ASIC), plans to release a new set of rules for automated trading this week, chief among which will be the introduction of circuit breakers for brokers.

High-Frequency Trading: Handle with Care

Steve Dew-Jones unearths disquiet among market participants, following the European Parliament’s unanimous vote in favor of European Commission proposals to restrict the practice of high-frequency trading.

NSE Shifts Blame for India Flash Crash

Since India’s S&P CNX Nifty index dropped 900 points earlier this month, the country’s largest exchange hasn't disclosed any evaluations of its own mistakes. One technologist has a few suggestions.

Cass Questions Circuit Breakers in New Study

The Cass Business School at City University, London, has released an academic paper questioning the validity of measures put in place after the Flash Crash to ensure market stability.

The Curious Case of the Nifty

The Flash Crash on India’s exchange highlights the perils of instituting catchy mechanisms like circuit breakers without really analyzing what causes problems in the first place.

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