Tuesday, October 19, 2010

Another Day Another Flash Crash, 10% In 8 Seconds!

On Barron's: Trades 'Busted' After S&P 500 ETF Drops 9.6%

I added some comments in bold purple font.

  • By Murray Coleman
    Just a few weeks after trades in one of the most popular bond ETFs were canceled due to what exchange officials described as essentially a clerical error, a similar ‘bust’ took place. ( Ahem! Not the first! )

    The NYSE Euronext (NYX) said Monday it had busted — i.e. canceled — trades in the SPDR S&P 500 ETF (SPY). ( ??? These trades will be .... busted! Can just cancel just like this????? OMG! Is the US Markets turning into the world biggest Mickey Mouse stock exchange or .... what??? LOL! LOL! )

    The most liquid ETF in the U.S. dropped almost 10% in eight seconds as about 7.2 million shares were traded, according to a late Bloomberg report. ( the most liquid, the most traded stock in the US and in the world.... dropped 10% in 8 seconds! Damn! I wonder who is faster? Usain or these jokers???? )

    The story estimated the cancellations briefly erased $7.9 billion from SPY’s value.

    On Oct. 1, one of the most popular bond ETFs also had a short yet nasty fall.

    The iShares iBOXX Investment Grade Corporate Bond ETF (LQD) dropped nearly 10% early in that day’s session.

    At the time, NYSE Euronext told Barron’s the problem was due to a clerical mistake in entering the wrong amounts on a large ticket. ( Clerical mistake? Who are they trying to kid???? )

    No matter what the reason this time, the mishap couldn’t have come at a worse time. ( yeah... for whatever the reason... isn't it a wonder... why folks don't trust Wall Street? Doesn't it make sense when you keep hearing folks complain that the markets are rigged? LOL! But for some... it doesn't matter, what matters is the markets are UP! LOL! )

    Apparently, data showing SPY had taken such a big drop became public just as Apple (AAPL) and IBM (IBM) were announcing earnings.

Oooo.... the drop happened when AAPL and IBM were announcing their earnings?


Hmmm... those 2 stocks fell after hours... :P

On ZH: SPY Flash Crashes: NYSE Cancels $500 Million Worth Of Trades

  • Why bother with crashing individual stocks when you can crash the most traded entity of all. Today at precisely 4:15 the SPY flash crashed, sending the price of the most popular security in the world down to $106.46 from its opening price of $117.74.


mosea said...

You have mentioned about Xingquan in the past. What or how do you see its recent ambitious foray by listing in Taiwan through TDR?

Kris said...


I think the Americans have learn alot from us Malaysians..in reverse however..how to effectively pump up the KLCI in the dying minutes of the closing bell :P