Some traders say one culprit for the quick downdraft might have been a type of trade called an "intermarket sweep order," or ISO. ISOs, which some studies say account for nearly half of all trades, send trades to whatever exchange that has the best price. The order can remain there until it is filledâeven if that means the price falls to near zero. ----------------------------------------------------------------------- Finally caused a real stink instead of only a small one noticed only by a few traders.
The culprit is the NYSE stopping trading and orders are routed to other markets that have much less liquidity. THAT IS THE REASON. If the NYSE "specialist's" could handle the volume, then they can stay in the kitchen. But, NO they stopped trading at the main liquid station and orders went elsewhere. DOW -400 before all this. For good reason. The problem is the NYSE period. Now, here comes the blames game of fat fingers, HFT, C, etc.....guberment will spend millions to investigate this and our tax payer money goes down the drain just like us funding 17% of the IMF who will bail out Greece. If you want to hear the S&P pit with real paper selling, I'll post it. Futures market worked fine...every buyer has a seller.
Fugg that. The futures market was worse than the stocks. I heard the pit call. 10 point spreads. They responded directly to the stock prices . I've heard more bullshit in the last 2 days about this than can be counted. âYesterdayâs flash crash was incredibly startling,â Representative Paul Kanjorski said in a statement, announcing a May 11 hearing to examine the incident. âWe cannot allow technological problems, regulatory loopholes, or human blunders to spook the markets and cause panic.â
Problem. Reaction. Solution. Someone wanted a certain legislation to pass. Thursday's artificial crash was the exact problem they needed (engineered?) to push their agenda forward...