Saturday, October 02, 2010

Reasons For Flash Crash:Published & Unpublished

Yesterday the SEC released its long awaited analysis of the Flash Crash that happened in May of this year. The agency concluded that a block of $4.1 billion of Standard & Poors E-Minis futures were sold by Waddell & Reed to hedge a postion. The dollar figure wasn't unusually large. But todays stock market includes ambient algorhythmic fast trading systems . These ambient systems make up 60% of daily volume. These systems are designed to front run legitimate orders rather than fill the orders. I.E. the roving Wall Street pirates steal rather than provide liquidity. They effectively multipled the Wadell & Reed order many times over and swamped the market at large.

All these systems and activities by the Wall Street thugs have been OKed by the S.E.C. Our government is stillowned by Wall Street.

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