May 6 (Bloomberg) -- Nasdaq OMX Group Inc. said itâs investigating potentially erroneous trades involving multiple securities between 2:40 p.m. and 3 p.m. New York time, when the U.S. stock market tumbled. The Dow Jones Industrial Average plunged almost 1,000 points today before paring its decline and ended down 347.80 points, or 3.2 percent, at 10,520.32. About $700 billion of U.S. stock-market value was erased in less than 10 minutes, data compiled by Bloomberg show. Trades in Accenture Plc that drove the second-largest technology consulting companyâs stock price down more than 99 percent to a penny were canceled by the CBOE Stock Exchange, according to data compiled by Bloomberg. A total of 19 trades of 100 shares each were executed at 1 cent in seven seconds from 2:47 p.m. to 2:48 p.m. in New York, a minute after the Dow average plunged by the most since the market crash of 1987, the data showed. Eighteen of the trades were executed on the CBOE Stock Exchange and were canceled. The first trade that sent Accenture to a penny was executed on the Nasdaq Stock Market. That transaction has yet to be canceled, the data showed. Accenture shares closed today at $41.09, down 2.6 percent in New York Stock Exchange composite trading. The Dow average lost as much as 998.5 points, or 9.2 percent, before paring its drop. The Standard & Poorâs 500 Index fell as much as 8.6 percent, its biggest plunge since December 2008, before trimming its decline to 3.2 percent.
By Michael Moore May 6 (Bloomberg) -- Citigroup Inc. said it found âno evidenceâ that it was involved in erroneous trades after U.S. equity markets plunged today. âWe, along with the rest of the financial industry, are investigating to find the source of todayâs market volatility,â bank spokesman Stephen Cohen said in a statement. âAt this point, we have no evidence that Citi was involved in any erroneous transaction.â
P&G Trades Won't Stand: NYSE CEO "That $39 trade will not stand," said Duncan Niederauer. "I think it was just a few offers and there weren't many bids." "This is the market structure we all signed up for," Niedermayer said. "Today we had to slow the market down. We also have the right to slow down the market as appropriate," he added. "I don't think you are looking for one bank that traded the wrong number of shares," Niederauer said. "Electronic markets have a different business model." The chief executive also had a prediction for Friday's market open: It's going to be "fairly ugly tomorow morning."
The f^king markets are rigged and managed worse than casino's. Look across the board and it is not just PG and ACN that were down sharply during that time. Also the cross currencies were being pounded. I don't buy the fat finger BS, but would put money on damn algo black box gone haywire. When all algo's start to work in concert. Same thing was happening in last years Q1 meltdown.
Forced liquidation of a major portfolio just as bids are pulled. This could drive a stock down to the minimum bid of 0.01 on just a few lots. This really just follows the universal law of market liquidity: it's always there until you need it the most.
One way to stablize a market is to run all the stops down to big buyers and watch it rip back up. Floor trader know that ... People who run banks tettering on the edge of collapse know that.
SAN FRANCISCO (MarketWatch) -- Sen. Ted Kaufman, a Democrat from Delaware, said the U.S. stock market's sharp, swift plunge on Thursday "must be carefully reviewed and placed within a meaningful regulatory framework soon." Kaufman, who has introduced an amendment to the bank reform bill that would require the Securities and Exchange Commission write rules creating a fiduciary standard for broker-dealers, said "the potential for giant high-speed computers to generate false trades and create market chaos reared its head again today." The "battle of algorithms" is not understood or even "remotely transparent" to the SEC, he said in a statement.
NASDAQ will cancel all trades executed between 14:40 and 15:00 >60% away from the last print in that security at or before 14:40