NEW YORK (Reuters) - A single trader alone could not have caused the "flash crash," a report by Instinet said on Monday, adding its voice to those casting doubt on a landmark regulator report that sought to explain the May market plunge.
The U.S. Commodity Futures Trading Commission and the Securities and Exchange Commission issued a September 30 report that said a $4.1 billion sale of E-mini futures contracts helped trigger the unprecedented, lightning-quick crash and recovery of May 6.
The 104-page report also concluded that high-frequency traders offsetting positions between futures and stocks, and a crush of orders to sell-at-any-price, helped exacerbate the liquidity crisis that afternoon.
Instinet, a brokerage and alternative trading venue operator owned by Nomura Holdings Inc, said the big sell order "could not be the singular cause" of the crash.....read on
No comments:
Post a Comment