The Latest Algo Gone Wild: British Pound Gets Rocked After Improper Sell Order

have to rein in these guys,out of control, TURN OFF THE MACHINES



http://www.businessinsider.com/the-...pound-gets-rocked-after-improper-order-2010-7

 

Rumour this morning's GBP/USD spike was do to an algorithmic model gone wild -- trying to sell $3bn instead of $3m. Whoops.
about 4 hours ago via web

 

No error checking in that model huh?

 

if you trade fx long enough.. those phantom spikes happen "all the time"..

 

Algos putting 3 extra zeros in an order ??? Sorry, but that's the signature of a manual error.

"Or something like that".

 

there are no humans trading any more, all robots in FX

 

The entire market is running on algorithmic trading.

:eek:

 

Rumor is it was a Dutch bank...let me think, which large Dutch bank is heavily involved in Forex ? Scratch, scratch...:eek:

 

Algos gone wild can have cascading effects on stop orders, triggering other algos to send orders or can throw 1000s of orders when there is a problem in their logic/ a scenario that was forgotten initially in the programming , but they don't put extra zeros in numbers.

The journalist doesn't have a single clue what caused it, but "it must be algo trading, they continually talk about it on news"...LOL

 

The name of the bank in question starts with an 'R', I'm told... Apparently, they pulled the plug on the machine when it got filled in arnd 400 mil.