Anadarko flash crash raises questions about market structure rules

Discussion in 'Wall St. News' started by OnClose, May 20, 2013.

  1. vicirek

    vicirek

    Because it gained speed in thin air. There is no liquidity to support these valuations unless shares are circulating in tight loop with nobody actually owning them for longer than split second. Then you can create artificial liquidity keeping those lofty valuations. Speed is your friend like in windsurfing.
     
    #11     May 20, 2013
  2. Bob111

    Bob111

    the system need to have not only 'rights' and exemptions for all those 'pro' participants,but also -OBLIGATIONS. they have none now. MM's are bad,but at least there is some rules and certain obligation to maintain orderly market. now we have market,where everyone who is a 'pro' can do whatever the f** they want,but without any obligation to protect their place of 'work'. they can rape you anyway they want and this is precisely what they do. i would do the same,if i'm allowed to. look at the spreads between bid and asks. i've seen jumps as big as 10% DURING THE REGULAR SESSION

    this piece of s** system is corrupted to the bone,no better than damn Greece or rest of the Europe
     
    #12     May 20, 2013
  3. Bob111

    Bob111

    dude..look at the nanex charts. they only showed the big ones,who knows,how many other securities are affected.you can't bust those trades on SPY or other ETF'S(where APC is a big part of it). you can's bust options on them. you just can't. i said above-it's like a domino effect. imagine not one,but 5 major stocks drop like this
     
    #13     May 20, 2013
  4. vicirek

    vicirek

    Market can go slower but at much lower valuations. Over the years tons of paper (bonds, shares, derivatives) has been printed (check the market capitalization curve). Money to cover it does not exist yet. That is where HFT comes in. It keeps the illusion of liquidity to maintain unrealistic price levels.
     
    #14     May 20, 2013
  5. sheda

    sheda

    You make it sound as though theres four people in the market and the rest is HFT ~ No one owning a share for more than 1 second as part of a grand conspiracy and if HFT went everything would fall to 2 cents over night...
     
    #15     May 20, 2013
  6. vicirek

    vicirek


    I do not make sounds. I add and subtract numbers.

    You are wrong. It is actually 5c.

    Where conspiracy theory comes into play here unless you are paid to troll internet to discredit inconvenient facts?
     
    #16     May 20, 2013
  7. sheda

    sheda

    Are you going to tell us theres 500 trillion evil derivatives about to wipe the global economy next? Then maybe you will start repeating BUBBLE BUBBLE BUBBLE BEN! Add in a bit of SCUM HFT!..then a dash of I was right! Hey lets go the whole way, maybe you can end with THEY JUST LOSE!!

    I love the way people take complex issues with aspects that do need adressing then add their extremely simple all encompassing explination of why, actually, eveyrthings a billion times worse:

    Well they printed "tons" of paper and stuff and the paper to cover it aint there and thats where this comes in so without it everything would be worth nothing.
     
    #17     May 20, 2013
  8. vicirek

    vicirek

    First of all APC is NYSE stock and specialist model of market making is failing again due to liquidity constrains. It happens again and again and NYSE might not be interested in letting people realize that they have problems.

    Second I do not make up stuff or try to label things as bad or good in regards to disparity between valuations and available liquidity. This is one of the factors that has to be considered.

    It is not me who comes up with simple explanations and easy solutions as media and many participants on this forum seem to know that the problem is HFT and subsecond market speed. I am not so sure that this is all what has to be considered for these repeating events of market misfire.
     
    #18     May 20, 2013
  9. vicirek

    vicirek

    In 1987 crash (and other crashes too) market makers did not pick up phones and did not feel like they had any obligations.

    And in 2013 APC NYSE specialist did not feel like they have any obligation to maintain fair and orderly markets in NYSE listed stock.
     
    #19     May 20, 2013
  10. Simple solution, no more market orders... The CME doesn't have them.
     
    #20     May 23, 2013