SPY Flash Crashes: NYSE Cancels $500 Million Worth Of Trades

Tyler Durden's picture

Why bother with crashing individual stocks when you can crash the most traded entity of all. Today at precisely 4:15 the SPY flash crashed, sending the price of the most popular security in the world down to $106.46 from its opening price of $117.74.

Luckily for all the people who wrote in to us, and thousands more, who may have had MOC orders that got filled at 10% lower, the exchange has cancelled millions worth of trades. Per Bloomberg: "NYSE Euronext cancelled all trades
in the $74.8 billion SPDR S&P 500 ETF Trust that occurred at
almost 10 percent below the security’s opening price, according
to an email sent by the exchange." And as presented below (which is a mere sample of all the DKed trades) there were about $500 million worth of notional that just got cancelled. The market is a farce, wrapped in a joke, inside a tragicomedy.

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mjbommar's picture

As I noted in this post - AH Flash Crash in SPY?, there's still a 100 share bid at 106.46 on the order book.

mjbommar's picture

Up to 800 at 106.46.  Somebody playing games?

dlmaniac's picture

Let's blame Waddle and Reed again.

MayIMommaDogFace2theBananaPatch's picture

Those guys are quick!

now, WADDLE on over there and REED that chart to me...faster, dammit!

LowProfile's picture

Half a billion here, half a billion there...  Pretty soon you're talking about serious money!

berlinjames02's picture

This market is so FC'ked.

Remember the last flash crash?? We tested the 'crash' lows 2-3 months later. Will history repeat itself?

hedgeless_horseman's picture

Price discovery, bitches!!!!!!!!!!!

chopper read's picture

you're on a roll.  that one made me laugh out loud.  too fucking funny.

 

jeff montanye's picture

after the may 6 flashcrash the market traded below that level three weeks later and closed below that level about a month later.  this does not look near term bullish (talking my book).

Chappaquiddick's picture

Its the next mode they're using to fleece the public.  I've stopped trading because of this.

The only way to avoid this type of BS is buy and hold physical assets.  Obvious examples being gold and silver.

I personally think that this is going to happen again and again and again and who loses their shirt/skirt in a move like that? - dumb ass money, you and me, nicely positioned in a normal market but way over leveraged in a market that moves by 10% in a second.

No wonder people are pulling their hard earned out of these markets.

These fuckers in Wall Street need lining up against that Wall and then to be made accountable for this global fucking nightmare we're about to be plunged into.

ToNYC's picture

 

Cancelling trades en masse is just another example-form of the PPT, HFT, QE 1.5, FED buying all coupons, nix that, stocks this time. The point is the same. The mark-up in stocks is the crack you amended your social contract with the FRS to call a good Life and get spendy again. Serial bubble blown-outs beware.  The Zimbabwe market was On Fire, but the Zimbabwe currency burnt faster. The 'only thing' you think to do is most assuredly not tyhe ONLY thing, but education costs too much to waste it on the already convinced.

Chappaquiddick's picture

Convince me otherwise then Tony

cindycheng's picture

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HitTheFan's picture

Hope they don't cancel trades when it crashes for real.

Lets Hang Parliament's picture

I think you have stumbled on the Fed's cunning plan to keep the market green forever!

Reductio ad Absurdum's picture

Baldric: Lord Blackadder, I have a cunning plan to keep the markets from collapsing!

Blackadder: Does your cunning plan involve closing the markets so that no one can trade?

Baldric: My Lord! How did you know!

Blackadder: Because, Baldric, you are a dingleberry on Satan's bottom. I've seen more intelligent things than you wriggling around in my excrement. If you were a lemming, you'd say "How's the water down there? Don't bother, I'll check it out for myself."

[pauses] But still ... you may be on to something.

Baldric: Does this mean I don't have to sleep in the gutter no more?

Blackadder: That's right, Baldric. I'm promoting you to head pig slopper ... but you'll have to provide your own slop. And I'm still not paying you anything.

Baldric: God bless you, kind master!

johngaltfla's picture

Hope they don't cancel trades when it crashes for real.

You didn't hear? They have just now completed and canceled all trades for October 19, 1987. So that crash is no longer of any concern either.

hound dog vigilante's picture

"and canceled all trades for October 19, 1987. So that crash is no longer of any concern either."

Un-news, so to speak... or newspeak, so to speak. I speak, you speak... but let's not speak of speaking again.

 

 

seuss & orwell just collided inside my brain and it was glorious.  Oh theraflu! is ther nothing you don't make fuzzier?

 

AGORACOM's picture

John, that would make for a great story over on The Onion.  Get the idea over to them and make sure they give you the credit.

George ... The Greek .... From Canada

Hook Line and Sphincter's picture

How have we arrived at the carnival funhouse?

 

Vernon Wormer's picture

Sometimes software updates are tricky.

NoLongerABagHolder's picture

Yeah - those 1 second after the close software upgrades can really suck butt

AGORACOM's picture

So, whereas most of us website operators upgrade our software at midnight on Friday or Saturday to prevent disruption/glitches, the biggest exchange in the world upgrades their software at 4:15 on the first day of the week?

You really can't make this stuff up.  This would barely fly in a Bruce Willis flick.

I feel for my American friends.

Regards,

George .... The Greek .... From Canada

greg merrill's picture

Of course, if SPY can flash crash, what can't ?

I guess the humans really are dead...

 

http://merrillovermatter.blogspot.com/2010/09/humans-are-dead-at-least-to-hft.html

 

Pladizow's picture

Oh Please can I gamble in your rigged casino?

chopper read's picture

+1, funny. 

take ball, go home (to gold).  carry on. 

AccreditedEYE's picture

Only the patterns matter... nothing else. LOL

homersimpson's picture

The patterns that matter are the ones that go in a circle and are round and chewy.

AccreditedEYE's picture

Aside from this (SPY), look at different flash crash events and you see pullbacks to support lines correcting overbought situations. It happened with AAPL at the flash crash and late September. The computers take overbought situations and "fix" their technicals. Junk me if you want, but it has showed up more than a few times. It will happen again... it's what happens when code is trading with a master plan. 

Now get back to Sector 7-G!

Lux Fiat's picture

... it's what happens when code is trading with a master plan. 

Care to elaborate?

Dr. Hannibal Lecter's picture

My Dear Friend,

Are you a moron?

Warmest Regards,

H.

 

Lux Fiat's picture

Most days not.  I believe that I know what EYE was getting at, but there is a saying about assuming things...  Besides, from prior comments that I've seen from the EYE, I suspect that this person has considerably more market knowledge than I do, which makes me even more interested in the EYE's perspective, in this matter and others.   

Regards,

L-

Cleanclog's picture

Yes a farce!  But as Mark Fisher said recently, what if May's (or today's) was in debt markets rather than equities?  The repercussions would have been gianormous!

 

And just to keep going with the farces - today Mr. Geitner said the US would not debase the dollar, currency debasement is bad, we would never engage in such.   

akak's picture

So I guess the 96+% debasement of the dollar since 1930 is what, just a figment of our collective imaginations?

Give it up Timmay --- almost nobody is listening to you, and laughing if they are.

1100-TACTICAL-12's picture

I would love to trade punches with Timmy...Just lookin @ him makes me want to punch him in the nose,....