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Keyword: splashcrash

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  • Next Danger: "Splash Crash"

    05/23/2011 10:33:25 AM PDT · by george76 · 21 replies
    barrons ^ | MAY 21, 2011 | JIM MCTAGUE
    Markets are ill-prepared for a high-speed trading disruption that might simultaneously affect stocks, commodities, bonds and other assets. Last year's Flash Crash was a hair-raising experience for stock and commodities investors—comparable to the sudden descent of a large airliner from 38,000 feet to tree-top level, followed by an equally sudden and steep ascent. A trillion dollars in equity vanished in minutes, as stock futures, exchange-traded funds and equities plunged. I've recently heard from a computer-trading expert warning of the very real possibility of a more widespread and catastrophic "splash crash," a dislocation by high-speed trading computers that could simultaneously splash...