Total Carnage!!!

Discussion in 'Index Futures' started by youngtrader, Mar 15, 2008.

  1. Anybody see schatz break hard early Friday?

    Here is what I thought I saw.

    A big local started getting short an insane amount of contracts at 105.045. How did he do this basically all at one price? He kept the bund upticking just enough to keep bids firm in schatz. He would then hit those bids in big clips.

    Once it looked like he had all the shorts he wanted he then let the bund fall back a little and the schatz started to break as well.

    After the selloff started he pushed the market lower to a level on the orderbook with 5k bid (I can't remember the price). Locals started to lean on this size (thinking the market was overdone and we were coming on support levels). Everytime they leaned on that 5k bid somebody would hit the bid. Eventually we traded down to the level with 5k bid. After about 600 contracts traded the 5k bid all of a sudden flipped and was now offered 2k.

    Locals were caught long and puked. It was absolute carnage!!!

    Any thoughts on this? I know that these markets are run by only a few guys but I have heard that they can control up to 80% of the orderbook in both bund, bobl and schatz! I hear they are the same guys that used to flip but now have had to change with the market and use a different stratagy.

    I know dogfish is a big orderbook trader and I was wondering if either he or anybody else on ET could shed more light on this and maybe provide some info on what to look for when this local does this again (I would imagine he probably does it almost every day but not to the extent of Friday). All in all it was very impressive to see and it makes it even better when you are on the right side of the trade, although im sure some thought it wasn't that great.
  2. Asada


    Umm, I've heard of a runaway bot in FGBL...
  3. squeeze


    Looks like a bot went nuts in the bund around 11:17 London time. Price dropped from 115.63 to 113.93 in about 12 seconds and trading was suspended at 11:17:51.
    Restarted just after 11:20 back up at 115.45.
    The bobl was strongly affected by this and to a lesser extent the shatz.

    It's not the big traders you need to be scared of these days, it's the geeks.
  4. Yeah I heard about the bund. I was actually trading euroswiss and short sterling while it was happening so I didn't get so see it. I heard some joker sold 25k at the market possibly more.

    Did bobl and schatz break hard with it or did they hold their ground? Because if bobl and schatz didn't break that would be a dead givaway that it was a fat finger trade.

    Regardless somebody is getting fired :D
  5. squeeze


    All the chaos was in the FGBL and was spread to the FGBM and FGBS.

    I should think someone will be looking for a new job as a result.
  6. Bobl did bugger all, i was leaning all over it for the 2000 bunds i brought.
  7. squeeze


    Bobl sold off from 110.1 to 109.95 over the same period. Not much of a move compared to the bund.