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

Discussion in 'Wall St. News' started by falcontrader, Jul 21, 2010.

  1. 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
  2. No error checking in that model huh?
  3. if you trade fx long enough.. those phantom spikes happen "all the time"..
  4. TraDaToR


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

    "Or something like that".
  5. there are no humans trading any more, all robots in FX
  6. S2007S


    The entire market is running on algorithmic trading.

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


    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
  9. 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.
    #10     Jul 21, 2010