Dutch Bank Algo Blamed For GBP Flash Crash

Another rogue algo takes matters into its own binary hands. Time to institute circuit breakers for the tiny FX market, which alone celebrated Obama's latest set of oratory delight by flash crashing all on its lonesome...

From Goldman's Mitesh Parikh:

GBP - what just happened

To save being asked anymore times – the short answer is I honestly don’t know.. 1.5290 – 1.5168 between 7.56am and 7.57am.. unlikely it was for a fix (that would make sense if closer to 8am), and price action doesn’t suggest a mis-hit since it was ‘walked’ down over the course of the minute albeit exceptionally aggressively (not everyone executes as subtly as we do… no comments please!) We saw Dutch interbank names selling aggressively towards 1.5200 with some suggestion that their algo blew up from a few market sources, although we can’t comment on the validity of this.  Needless to say the market has corrected, cable is back above 1.5300, cross now sub 0.8430 , exactly where we started.

So now you know that you don't know anything.

Comments

[doomandbloom]

fa(s)t finger?

[butchee]

Fingerbang!!! http://www.southparkstudios.com/clips/152175

[Muir]

HAL: It can only be attributable to human erro

[ZeroPower]

Dutch eh. Didnt know they have much (finance related that is) besides ING

[Quinvarius]

Skynet has hotdog fingers.

[Overleveraged_a...]

Flash crash or not, this move was still in line with the charts... at least my charts. A good trader should have been prepared to handle the move. 5 minute'ers probably suffered anneyurisms from it

[Let them all fail]

Fat Underage Camel Killers

[Jeff Lebowski]

Well, just a second there, professor. We, uh, we fixed the *glitch*. So it won't be flash crashing anymore, so it'll just work itself out naturally.

We always like to avoid confrontation, whenever possible. Problem is solved from your end.

[Caviar Emptor]

Flash Crash! What a Feeling.....

We almost had it all....

[strannick]

'Another rogue algo takes matters into its own binary hands'.

TD flippantly throws off these phrases, each of which slogan could encapsulate a fiscal generation

[zoogle]

A meaningless blip when you trade the D1.

[Careless Whisper]

its magic

http://farm5.static.flickr.com/4038/4342958893_3af765aa3b.jpg

[The Rogue Trader]

or were they just dumping huge volume ahead of a big move down in GBP/USD? As GBP appears to be rolling over....amazing how the market goes back down to "flash crash" levels on its own pretty quickly....

[scratch_and_sniff]

Monkey see-monkey do.

[OutLookingIn]

 Dutch yeh? Must of been the swollen finger from the dyke on the keyboard.

[Muir]

HAL: I am putting myself to the fullest possible use, which is all I think that any conscious entity can ever hope to do.

[scratch_and_sniff]

i hooverd up this one...they probably hit B insted of M.

[Grand Supercycle]

DOW chart update :

http://stockmarket618.wordpress.com

[willien1derland]

Great Post TD - Keep up the incredible work!

[Itsalie]

That is again bullshitto. That was a clear phantom print to their friends to get out of the way as they bring the market down. Look at the GBP chart now, at where the GBP is stabilisng at a day later, exactly where the casper print low was.

[cindycheng]

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