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HFT Fat Digital Finger Breaks Citi Stock, Shares Halted As Circuitbreaker Triggered With Stock Plunging 20%
HFTs baby. HFTs. They just provide liquidity.
Some more details from Dow Jones on the latest mini daily flash crash.
Shares of Citigroup Inc. (C) fell as much as 17% Tuesday before trading was halted in the stock for five minutes as a result of the new circuit-breaker pilot program.
The trading halt was only the second time that a single-stock circuit breaker has been hit since a pilot program started earlier this month. It was the first to be triggered for a slide. The first trading halt from the program was prompted by a surge in shares of the Washington Post Co. (WPO) on June 16 that was later deemed erroneous.
The halt in Citi's stock was triggered at 1:03 p.m. EDT, according to NYSE Euronext spokesman Raymond Pellecchia Jr. Pellecchia said it remains unclear whether the trade in Citi was legitimate or erroneous.
After the five-minute pause, trading in Citi resumed with the stock down about 5.5%.
The halt came after a single trade was placed for 8,820 Citi shares at $3.3174, a 12.7% drop from the previous trade, where Citigroup shares were priced at $3.8. The $3.3174 price represented a 17% drop from Monday's closing price.
Pellecchia said the $3.3174 quote appeared on the Alternative Display Facility run by FINRA. The ADF is a facility for posting quotes, and reporting and comparing trades.
FINRA wasn't immediately able to confirm where the trade occurred and whether it was erroneous.
The sharp drop in Citigroup caught much more attention than Washington Post's June 16 surge, because it is much more widely held. Citigroup's market capitalization stands at around $109 billion, far greater than Washington Post's market cap of just over
$3 billion.
"Obviously once the trade hit the tape, it set off alarm bells all over the place," said Craig Peckham, equity trading strategist at Jefferies & Co.
Still, he added, "the pause in the market gave people time to digest what happened and the market impact appears to be relatively neutral."
Earlier this month, the exchanges launched the initial circuit breakers tied to individual stocks within the S&P 500 as a safeguard against the type of rapid plunges the market experienced on May 6. The market-wide circuit breakers establish a five-minute trading halt if a stock moves by 10% or more in the preceding five minutes.
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How many of these %$^%$* events do we need before they are SHUT DOWN!!
absofuckinglutely
Why exactly is this a problem?
If the HFT operators are OK with all of their shares being disgorged at fire sale prices, isn't that an excellent profit opportunity for other speculators?
Are you worried that the HFT's will suffer financial losses because of their errors?
Let me put it this way, Double down. The 9000 series is the most reliable computer ever made. No 9000 computer has ever made a mistake or distorted information. We are all, by any practical definition of the words, foolproof and incapable of error.
Until everyone leaves the poker game. HFT is a recognition that markets are a zero sum game (actually negative sum after commissions, fees, slippage etc) and they cannot lose until every investor is sucked dry of capital. As for the regulators, they are too busy sucking GS ass.
Not a finger, say I, that.
Something else has gotten fat.
Bwa ha ha ha ha ha ha.
SEC
HFT Bureau, this is Hari Mumbaini, how can I help you?
I'm watching S&P 1040 like a hawk... If it breaks, watch the free fall across the market!
Rich
It's lingering just above 1040. Like the crowd watching tight rope walkers: "how do they do it?"
Don't try this at home.
How much you bet that volume disappears and we close today at -8 points on the DOW?
Naughty hawk
It is one string away from snapping.
if ftse cracks 2morrow its deflation bitchez
Hey, it was taking it toward its fair market value.
HFT or reality?
Well, probably a little of both. Economic warfare, market on the fritz and fragile like a troll on ZH, computers dealing on the exchanges given great power and ability, no oversight by any regulatory body.
This is your market, and it's ending one minute at a time.
The Dust Brothers - This Is Your Life:http://www.youtube.com/watch?v=GHWRo5gzxl0
Very appropiate song for the occasion.
And if I may edit:
Economic warfare between Asia-Europe-US, economic warfare between GS and the American taxpayers.
"computers dealing on the exchanges given great power and ability, no oversight by any regulatory body"
But there is oversight and regulation. Like all speculators, HFT's that make errors in their valuation of stocks will suffer financial losses. Market participants are free to abandon exchanges that allow front running and use gimmicks like circuit breakers and the unwinding of valid trades.
"House of Saud, here is your coffee." "This smells like piss! You promised organic java." "We sprinkled suger in it, it won't taste that bad. And urine is sterile, you can drink it." "I would rather ride my camel home than continue to do business with you." "Take it or leave it, someone will drink it."
The Qataris want a few sips too...
This is scary considering C is one of the most liquid stocks. This will turn into another May 6 rout if ES breaks through 1035.
It was a mis-print. Simply a misprint.
Everyone calm down, we were just testing the fail-safe system.
teleprompter said we are fine, "the problem is in europe".
1040 is the launching point of the summer rally, consider this a gift from Ben & Tim, now get in there and buy !
Couldn't have happened to a nicer bunch of guys.
Hey! A (pretty) waterfall! Isn't that what "liquid" is suppose to do?
Yeah, looks fluid to me.
Didja ever watch a spinning top slow down? It seems steady and stable, but then there are weird unexplained erratic moves to the side before re stabilizing. These moves get more and more frequent before it enters the wobbly stage. Physics in action!
Guess the FED decided to bail huh? They will chalk it up as a mistake, but we all know Bernanke hit the 5 billions shares sell button to get out of collapsing market.
Daft.
fuckers ........... all i want to know is when is ROBERT RUBIN going to be arrested !!!??
WHAT?
ROBERT RUBIN!
Rubin owns some nice beachfront property in Nicaragua -- gotta keep up that healthy tanned look.
More like fat toe
Charts with vertical lines are exciting!
...and becoming much more common, it seems.
Well, I'm sure they provided some brief liquidity in the boxers of a few traders...
That is the funniest avatar I've ever seen, pure gold.
The good thing is that everybody saw it.... but will they acknowledge it?
Whoops. Boeing yesterday, Citi today. Is this a trend developing?
What's really amazing is the "Oh, interesting" attitude developing very quickly with these individual flash crashes. These are indications of serious cracks in the dam. The walls of the valley where the dam is anchored are sprouting little springs of water. The dam is rapidly being undermined.
Of course, we shall all merrily sing comforting songs of fellowship and profits to build up a false sense of calm and normalcy. After all, since the entire system is based solely upon confidence and faith, to even talk about evacuation will cause a system crash.
Remind me again exactly how we got to where we are today?
http://www.youtube.com/watch?v=KuStsFW4EmQ
If the system is dam(n)ed, then the cracks will undam(n) it.
Let it crash and learn to swim.
http://www.youtube.com/watch?v=WhyFZyzxqVw&feature=related
DJ Honda & De La Soul - Trouble In The Water (instrumental):http://www.youtube.com/watch?v=5xl69bvCx9E&feature=related
Liked both. The instrumental was kinda dreamy.
The original song is the instrumental with the lyrics. Couldn't find it on the net. Guess only ZH is perfect when it comes to technology.
one for MsC & MrLH. . .
this song got me through some deep times a couple years back, still have to listen to it every so often. . .(brilliant live version)
http://www.youtube.com/watch?v=SBSnR4ZP2MI&NR=1
Ray LaMontagne ~ "Be Here Now"
"Be Here Now"
Don't let your mind get weary and confused
Your will be still, don't try
Don't let your heart get heavy child
Inside you there's a strength that lies
Don't let your soul get lonely child
It's only time, it will go by
Don't look for love in faces, places
It's in you, that's where you'll find kindness
Be here now, here now
Be here now, here now
Don't lose your faith in me
And I will try not to lose faith in you
Don't put your trust in walls
'Cause walls will only crush you when they fall
Be here now, here now
Be here now, here now
thanks for the Zep & De La grooves. . .
peace.
Love Ray. http://www.youtube.com/watch?v=QpD97p7qGzs
Trouble been dogging me all my life.
... with apologies to Tool.
Everybody just relax - the levees are plenty strong to withstand a category 3 hurricane
For you and Mr. Lennon Hendrix above.
Led Zep, When the Levy Breaks:
http://www.youtube.com/watch?v=TDLfDzeDG2c
Lyrics:
http://www.azlyrics.com/lyrics/ledzeppelin/whentheleveebreaks.html
second - nothing to see here...just a phat phinger....listen to felix Zauluf interview on kingworld new
The beauty of HFT is when there are the extranious trades which go out of wack, the NYSE calls the trade invalid and lets everyone get their money back. In otherwords, risk free trading. I say take away the circuit breakers and lets watch this sucker play out.
Only when the price goes down. If it magically went up 20%, that would be just fine.
Even when the price goes up!! Last week Merrill Lynch had upward trades canceled due to run away algos (link below). This system is fail safe! If price runs away up OR down, NYSE cancels the trades and lets them reset the algos.
http://www.zerohedge.com/article/tgi-hft-fry-day
I don't know why any of you traders are in this mess. I like many of you, but trading in this, you are an addict and you will get what you deserve. Please get out of these markets:
1. To save your wealth
2. To save your mental health (stress, anxiety)
3. As a form of warfare against your government who does not represent you any more.
4. As an act of protest against HFT, TBTF, and other unnatural interventions.
5. As an act of protest against corporate fascism (or statism, if you prefer).
Long ago we had to have a separation of church and state. This was a good thing. Some religions were TBTF and the privileged recipients of "interventions" not enjoyed by other groups.
We need a new movement. Imagine how overwhelming it must have seemed to get out of reach of state sponsored religious oppression?
WE NEED A SEPARATION OF CORPORATION AND STATE.
Financial reform is not good enough. We must comb through every document that currently governs us and weed out all the areas where corporations are privileged in decision making processes.
We could just out law corporations (or their "person" status).
We could just out law governments and let corporations battle it out against each other, without governments at all (I call this option "getting real").
I doubt either of these is the route to take, so I fall back on a systematic examination of our rules to ferret out places where corporations have undue representation in governance.
I am out. To me this market is a game as highlighted in my posts above. It is strictly a playground for money machines. I think of it as gambling much like blackjack or roullette. However, there are no free drinks...
"WE NEED A SEPARATION OF CORPORATION AND STATE. "
Bravisimo!!!
"We could just out law corporations (or their "person" status)."
Encore!! Encore!!!
++1000 Until we separate Corporation and State we have nothing but our Crony Capitalist system.
Actually, corporation + state = fascism.
Missy, I got out of active trading back before the year 2000. I was introduced to The Privateer by a friend who was buying gold and silver at the time. After many long discussions and emails I cashed in my IRA (to the total amazement of my accountant). Bought some silver and was hooked then. Much of my regret comes from selling off my first silver 100 oz bar at just over $600 -- with a nice profit at the time. Wish I still had it although I've replaced it a few times over. The ride to 2010 has been exhilarating.
"SEPARATION OF CORPORATION AND STATE."
That's the bumper sticker I've been looking for. (luv ya)
Only Bender Bending Rodriguez can straighten this mess out now!
I wonder if this is a warning to the US govt. Hey we can make your C shares worthless!
This is getting comical. At least we know the circuit breakers work! /sarcasm off
Have people realised that Citi is "junk" finally?
Fat finger or not, C inched closer to fair market value today.
They are killing all of the penny stocks. Most of the Traders in the penny stocks are Retail investors vs the Aapl's of the world.
Great way to take all of the Retail Traders Money fast.
No problem just Big Ben letting a little steam off! Wish I sold them dam call sept.6 when they were at .35.
Digitus Me'dius?
other than Goldman, this coudn't have happened to a better group of people!
Sadly the "people" is the US taxpayer. There will be more bad debt piled onto the Fed and FDIC balance sheets before this is all over.
BLACK SWAN
Feels like old times with hat trick of C, JPM and BAC down >4%.
Nothing like a global banking panic to set terminals ablaze once more!
High volatility in a market with few market players should not be surprising. Look out for inflation, coming to a store near you!
Inflation? Are you f'n serious???
HFT bitchez!!
someone had to say it.
LOL!
That's just Timmy booking profit. Epic pump and dump... well played.
I've got just three words for this....
"BEAU" "TI" "FUL"
Econolicious
Perhaps they selected the wrong option:
Short [Greece],[Spain],[Portugal],[Citi]
"Get that pimply faced adolescent with an ounce of common sense off of this trading floor this instant!"
Or...if I had a guerilla HFT algo...I'd cram 'em in the morning...I'd cram 'em in the evenin'...all over this index....it's the crammer of justice....etc.
Here's an almost guaranteed strategy. By up Citi ASAP. Wait for the correction to justify the "fat finger" then short the F#%K out of it. These controlled implosions are never mistakes and always gravitate back down.
Skynet has now become self-aware. Meltdown imminent...
The market is not exactly following the previous flash crash trends, but whatever, this market is so anemic anything could happen.
They sure are keeping their options open though.
"Get rid of the bank tax or else!" Screamed Lord Blanckcheck. "Ie'yem twyeen, Ie'yem twyeen!!!" "Then why are just sitting in your office? What is that under the desk? Are you looking at pictures of Sen. Brown?" "Well, my jowb is wewee stwessful. I needed a bwake fwom all dat fwoel time."
Once it broke $3.80 the bottom fell out. Gee, who coulda seen this coming?
We could possibly see a mini-flash-crash in the SPY if we break 1040 on the SPX. That could get interesting....
Ask yourselves, who has a very large holding of C and just who is testing the liquid waters in case shit meets fan?
Ackman just bought a shitload didn't he?
HAAAAHAHAHAHAAA, this is pure comedy !!
How wonderfully ironic is that Citi is being eaten by its own parasite?
No mention of this as a response to the failing FinReg?
Oh this is definitely a response to Fin/Reg and in particular the bank tax . Understand these banksters are the greediest, most insidious junkees in the world.
If a bank robber, surrounded by SWAT outside, who also needed a hit of Meth, asked for the keys to the vault, and it was made so, and then he asked for a chopper, and it was given, don't you think he would also ask for some Meth. He would demand it!
"I want my chopper filled with crystal, ya hear me?!"
if they can crash Citi on 8000 shares think what they could do to the market?
my prediction is that the fundies (possibly through collusion) will break the back of the Fed and restore their functions to the free market.
>if they can crash Citi on 8000 shares think what they could do to the market?
This is a very interesting point.
I think the best thing for the exchange to do would be to get rid of the rinky dink gimmicks like circuit breakers. If people want to run haywire HFT's, disgorge their shares, and suffer financial losses by posting wacky trades, let them. There's nothing wrong with being an idiot and giving your money away to someone more responsible.
The halt came after a single trade was placed for 8,820 Citi shares at $3.3174, a 12.7% drop from the previous trade, where Citigroup shares were priced at $3.8. The $3.3174 price represented a 17% drop from Monday's closing price.
The retail investor takes it in the shorts again. A $30k trade gets killed but who else got saved?
Thank God all most all of my Money is in Rental Real Estate. Although, finding Tenants these days is not easy. Still a lot better than the Wall Street Casino.
I thought about Selling a few but where oh where would I put that Money? Not in the Wall Street Casino. Not in the Broke Banks. I guess it is better where it is for now.
HFT's DO NOT provide liquidity, they provide safety net. Machines in general are dumb as a bag of hammers, use that fun time for your profit. The HFT's are playing like a bunch of NPC from a DND game (who said it wouldn't be useful in really life).
Seriously the math is the SAME math as a death by dragon breath throw. I wish I were kidding but I'm not.
Run your own numbers please.
Certainly a lot of details like that to take into consideration. Thanks windows vps | cheap vps | cheap hosting | forex vps