[ Follow Ups ] [ Post Followup ] [ The AAA Frame Message Board ] [ FAQ ][ Follow Ups ] [ Post Followup ] [ The AAA Frame Message Board ] [ FAQ ]Posted by Marc on August 22, 2010 at 21:20:45:
NYTimes article on the mini stock market crash that happened on May 6th.
Excerpts:
“There is a credible allegation that there is seriously abusive practices going on,” said James J. Angel, a financial market analyst specialist at Georgetown University, “to the extent that somebody is firing in a very high frequency of orders for no good economic reason, basically because they are trying to slow everybody else down.”
At a Washington hearing on the flash crash last week, Kevin Cronin, director of global equity trading at Invesco, a big fund manager, warned about “improper or manipulative activity” in the stock market.
In an Aug. 5 letter to the Securities and Exchange Commission, Senator Edward E. Kaufman, Democrat of Delaware, warned about a “micro-arms race that is being waged in our public marketplace by high-frequency traders and others.” He said that the traders were moving so fast that regulators could not keep up.
“The patterns are quite beautiful,” he said. “We can’t see any economic reasons for what they are doing.”