Plunge in 10 ETFs triggers "flash crash" memories

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Egg
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Plunge in 10 ETFs triggers "flash crash" memories

Post by Egg » Sun Apr 03, 2011 7:37 pm

The market is completely unstable. Bodes ill for the economy.
Ten new exchange-traded funds suffered their own mini “flash crashes” shortly after the U.S. stock market opened on Thursday, suggesting recent measures put in place to protect against extreme market moves may not be enough.
Nasdaq OMX Group Inc said it canceled trades in 10 new ETFs sponsored by Scottrade affiliate FocusShares, some of which briefly plummeted as much as 98 percent.
The latest abrupt share drop comes on the heels of several sudden and unexplained plunges that remind investors of the May 2010 flash crash, which wiped out nearly $1 trillion in market capitalization in a few minutes and have kept retail investors wary of trading stocks.
http://www.reuters.com/article/2011/03/ ... C420110331


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Pigeon
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Re: Plunge in 10 ETFs triggers "flash crash" memories

Post by Pigeon » Sun Apr 03, 2011 10:45 pm

Electronic trading is becoming it's own worst enemy.

Interesting info on electronic trading and the May 2010 flash crash.

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