How can you not trace a 900 point Flash Crash//Monday 3 PM

Discussion in 'Trading' started by Ayn Rand, Feb 6, 2018.

  1. Ayn Rand

    Ayn Rand

    Here is the article - https://www.bloomberg.com/news/arti...fingerprints-all-over-a-dow-rout-for-the-ages

    How can you not trace back the trades? There has to be an audit trail. Money is moving out of and into accounts.

    If anyone has more detailed data on the 10 min Flash Crash would be interested.

    Also if you are shotting out stops and the like how does everything bounce back so quickly after a Flash Crash?
     
  2. Overnight

    Overnight

    Algos?
     
  3. Ayn Rand

    Ayn Rand

    I know there and bots and high frequency trading and ... but all that has to be tied to actual accounts.

    Every time this happens it is stated that no one knows what happened. Not true. There has to be an audit trail that you can follow.
     
  4. Overnight

    Overnight

    It is because of the resources needed to trace the problem. Look at the ES today. 4 million transaction in ES futures alone? How many more options were traded across all those months?

    Those were transactions. Those were trades. Now...How many orders were entered and exited that were never executed? 10 times that? 20 times?

    Who the hell could possibly trace something like that? Remember, it is not the trades that are being questioned, it is the spoofing. It is the spoofing that caused the acceleration of the selling. The machines started spoofing each other, and it took humans down with it.

    Spoofing is illegal, but the ability to trace every single order entry/exit is beyond human ability.

    This is why spoofing events of a minor degree take the CFTC YEARS to investigate and prosecute. Just look at the disciplinary notices from the CME group, and see how long the time spread is between event and charges filed. These major events? They will never get solved unless a boat-load of resources from multiple agencies is brought to bear on the problem.

    This is why Carl Ichan said today that these markets are now dangerous. They have been before, but this is now the new level.
     
  5. If you learn anything from what happened yesterday it is don't rely on the media or the gubmint to tell you what happened. Actually don't look for anyone to tell you.

    It happened. Next.

    But btw S&P 500 equities composite sell vs buy volume yesterday -99.21%. All I need to "know".
     
    cdcaveman likes this.
  6. Ayn Rand

    Ayn Rand

    SunTrader - I do not follow - "But btw S&P 500 equities composite sell vs buy volume yesterday -99.21%. All I need to "know". Should it equal 100%? That is the significance?
     
  7. JackRab

    JackRab

    Algo's chasing long volatility I guess. Starts with VIX going up for a week... shorts trying to cover on Friday, pushing up vols together with markets dropping... then it snowballed and everybody with vol algo's running for the exit, buying vol and selling equity at the same time.

    Nothing illegal about that.
     
  8. Bobbybax

    Bobbybax

    Short answer for what happened.....complacency.
     
  9. Who gives a shit who it was. That has nothing to do with this business.

    Take you for example, are you really a 66 year old female from Thailand?
     
    spread'em likes this.
  10. That sounds hilarious and weird and fake;
    I kind of just assume everyone in this field is a middle-aged male. (or maybe younger or older)

    Her birthday says April 1...April Fool's Day, perhaps...
     
    #10     Feb 7, 2018
    athlonmank8 likes this.