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Today's Flash Crash: From $6.90 To $0.09 In Two Seconds

Tyler Durden's picture




 

Thanks to Nanex we once again get a reminder that not only is the economy broken, something which becomes painfully clear each and every time the monetary and fiscal stimulus are about to get yanked, like right now, but that our stock markets continue to be the butt of all algorithmic jokes. Today's punchline: Bitauto Holdings, which traded from $6.90 to $0.09 in two seconds. And lest one thinks this was a fat finger, the total number of trades canceled subsequently by the NYSE and Nasdaq was 22,900 shares. SkyNet strikes again.

View 1 - Trade and Quote Prices:

View 2 - Trade and Quote Prices and Sizes:

And the tens of thousands of cancellations:

;ts|t|Symbol|Listed Exg|Reporting Exg|Date|Seq #|Exg Time|Price|Size|TCondition|

09:33:06|eBITA|NYSE|BATS|Cancel;Busted;|4280|1|0.12000|100|
09:33:06|eBITA|NYSE|BATS|Cancel;Busted;|4281|1|0.12000|900|
09:33:06|eBITA|NYSE|BATS|Cancel;Busted;|4253|1|0.10000|200|
09:33:06|eBITA|NYSE|BATS|Cancel;Busted;|4263|1|0.10000|100|
09:33:06|eBITA|NYSE|BATS|Cancel;Busted;|4231|1|0.09000|100|
09:37:26|eBITA|NYSE|EDGX|Cancel;Busted;|4233|1|0.09000|100|
09:37:26|eBITA|NYSE|EDGX|Cancel;Busted;|4254|1|0.10000|200|
09:37:26|eBITA|NYSE|EDGX|Cancel;Busted;|4265|1|0.10000|100|
09:37:26|eBITA|NYSE|EDGX|Cancel;Busted;|4283|1|0.12000|900|
09:37:26|eBITA|NYSE|EDGX|Cancel;Busted;|4282|1|0.12000|100|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4216|1|6.12000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4217|1|6.03000|300|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4218|1|5.86000|700|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4219|1|5.74000|900|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4220|1|5.71000|1000|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4221|1|5.71000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4222|1|5.62000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4224|1|5.62000|600|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4225|1|5.17000|1900|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4226|1|5.17000|100|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4227|1|5.17000|100|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4229|1|0.09000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4230|1|0.09000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4234|1|0.09000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4235|1|0.09000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4237|1|0.09000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4238|1|0.09000|100|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4239|1|0.09000|600|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4240|1|0.10000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4241|1|0.10000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4243|1|0.10000|400|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4245|1|0.09000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4246|1|0.09000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4247|1|0.09000|400|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4249|1|0.09000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4250|1|0.09000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4251|1|0.09000|400|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4256|1|0.11000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4257|1|0.11000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4258|1|0.11000|400|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4260|1|0.12000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4261|1|0.12000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4262|1|0.12000|400|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4267|1|0.12000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4268|1|0.12000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4269|1|0.12000|400|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4273|1|0.09000|800|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4274|1|0.09000|200|
09:47:40|eBITA|NYSE|NQEX|Cancel;Busted;|4277|1|0.12000|1000|

 

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Fri, 06/03/2011 - 12:38 | 1336448 Racer
Racer's picture

They would not continue to do it if they had to stand

Fri, 06/03/2011 - 12:43 | 1336456 InconvenientCou...
InconvenientCounterParty's picture

why play the game if there is a chance you might lose?

Fri, 06/03/2011 - 12:46 | 1336470 Racer
Racer's picture

Game? It is not a game... Banksters win rate = 100% Punters win rate = 0%

Fri, 06/03/2011 - 14:43 | 1336977 Thomas
Thomas's picture

Nero used to act very un-emperor-like by competing in some of the games. Amazingly, he never lost.

Sat, 06/04/2011 - 10:45 | 1339126 Spirit Of Truth
Spirit Of Truth's picture

Has everyone here seen the Backlight documentary on quants?  A must see:

http://thespiritoftruth.blogspot.com/2010/10/wall-street-is-googled.html

Fri, 06/03/2011 - 12:46 | 1336474 TheTmfreak
TheTmfreak's picture

No kidding.

Fri, 06/03/2011 - 12:59 | 1336519 Michael Victory
Fri, 06/03/2011 - 13:01 | 1336525 slaughterer
slaughterer's picture

When does this happen to the ES and the Russell 2000?  I want to put in my bids right away.   Maybe I can escape being busted.

Fri, 06/03/2011 - 12:39 | 1336451 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Imagine a world without the festering corrupt dung that is the U.S. 'markets' opening daily... or, better still, without the U.S. existing at all. Bliss.

In god we trust.

Fri, 06/03/2011 - 13:15 | 1336571 John Law Lives
John Law Lives's picture

What have you ever contributed to the world... aside from your perpetual cynicism?

You are real brave making such bold comments from behind a keyboard.

Fri, 06/03/2011 - 13:25 | 1336623 fuu
fuu's picture

Pot meet kettle, please notice you both have the same coloration.

Fri, 06/03/2011 - 13:38 | 1336703 John Law Lives
John Law Lives's picture

<<<  Pot meet kettle  >>>

I didn't call for the end of a nation.  The cynic did.      

 <<<  the same coloration >>>

Don't judge a person by their avatar.

 

 

Fri, 06/03/2011 - 14:34 | 1336927 fuu
fuu's picture

Hypocrisy is always good for a laugh.

 

HAHAHAHAH.

 

Notice he didn't call for the end of a nation, he just speculated that it would be nice to not have the most manipulative nation on the planet around.

 

Fri, 06/03/2011 - 16:18 | 1337431 John Law Lives
John Law Lives's picture

<<<  Hypocrisy is always good for a laugh.  >>>

Glad you are keeping yourself amused, but I am not gulty of hypocrisy here, comrade.

 

<<<  Notice he didn't call for the end of a nation, he just speculated that it would be nice... >>>

It would be nice if you had something intelligent to say.

Yawn!

Fri, 06/03/2011 - 16:55 | 1337551 fuu
fuu's picture
by John Law Lives
on Fri, 06/03/2011 - 08:48
#1335349

 

Why are so many ZH readers referencing commentary from CNBC?  Who cares what is said on that sorry excuse for a financial news program?  Here is some free advice:

Turn that excrement off!


by John Law Lives
on Wed, 06/01/2011 - 14:03
#1329599

 

This fool says that we are on the verge of a "great, great depression" but that investors shouldn't sell stocks...

http://www.cnbc.com/id/43236764

Brilliant advice...

 

 

I should really follow your advice, you add so much consistency to topics yourself. Thanks for the tip.

Fri, 06/03/2011 - 17:33 | 1337653 John Law Lives
John Law Lives's picture

1.  CNBC does a poor job reporting economic news (imo).  I advised ZH followers not to waste their time watching it.

2.  The article I referenced was something I came across on the Yahoo! Finance home page. I also stated in the same thread that I was being sarcastic, as I believe the article I referenced was offering people some bad advice.  You conveniently omitted the reference:

-----

by John Law Lives
on Wed, 06/01/2011 - 15:11
#1329823

I was being sarcastic re. his brilliant advice. Unless there is QE3, I think the stock market will fester.          
-----

fuu, you've got nothing.  Stay in the minor leagues where you belong.  You are lulling me to sleep.  Yawn.  Zzzzzzzzzzz...

Fri, 06/03/2011 - 12:45 | 1336463 Archimedes
Archimedes's picture

Well the last POMO is next Thursday June 9th. That is when the real fun begins!

Fri, 06/03/2011 - 12:54 | 1336482 Cognitive Dissonance
Cognitive Dissonance's picture

Actually it is the last publicly scheduled POMO. They usually come out with the next list (in this case for the remaining 3 weeks) a day or so before the end of the last list. And even when QE 2.0 ends on June 30, the Fed will still maintain it's balance sheet meaning they will continue to use interest and principal payments received to purchase more Treasuries.

Not saying it is 'enough', just sayin'.

Fri, 06/03/2011 - 12:42 | 1336464 LRC Fan
LRC Fan's picture

Why has the dollar tanked?  Just people realizing it's a shit currency?  The Greek news hasn't been really great, nothing has changed since this morning. 

Fri, 06/03/2011 - 13:04 | 1336534 DavidC
DavidC's picture

Because the stock market's been rising...ermm, is that right?

DavidC

Fri, 06/03/2011 - 13:11 | 1336559 carbonmutant
carbonmutant's picture

Oooo, negative divergence...

Fri, 06/03/2011 - 12:47 | 1336469 Archimedes
Archimedes's picture

Duplicate post...my bad

Fri, 06/03/2011 - 12:47 | 1336476 firstdivision
firstdivision's picture

Dear NYSE, CFTC, SEC, NASDAQ, et. al

At last check, in order for a trade to occur there has to be a buyer and seller that come to an agreement, much like a contractual agreement.  So these trades still stand.

Signed

All Rational People

Fri, 06/03/2011 - 13:30 | 1336668 aerojet
aerojet's picture

That statement is false:  There were no bidders, hence the fall to level where there were  bbidders, or the stub bid, in this case. 

Fri, 06/03/2011 - 12:57 | 1336478 firstdivision
firstdivision's picture

*dup*

Fri, 06/03/2011 - 12:45 | 1336479 buzzsaw99
buzzsaw99's picture

Why bother to put in a bid? You either pay too much or the trade gets busted.

Fri, 06/03/2011 - 13:01 | 1336538 Kickaha
Kickaha's picture

Just another example in a long string of fine examples of how trading of securities for short term profit assists in price discovery.

 

Fri, 06/03/2011 - 13:35 | 1336681 aerojet
aerojet's picture

That is exactly what I believe--the "regular" market is like the Matrix and every once in awhlie, due to the nature of computers, a tiny glimpse of our true reality seeps through.  Skynet, indeed!

Fri, 06/03/2011 - 13:05 | 1336549 slaughterer
slaughterer's picture

Would appreciate a post on Hatzius's reaction to the employment report today.

Fri, 06/03/2011 - 13:48 | 1336760 NotApplicable
NotApplicable's picture

Probably just like all the rest of them, befuddled, back-peddling spin.

Fri, 06/03/2011 - 13:10 | 1336554 jmc8888
jmc8888's picture

You know, they fine dumbasses who accidently call 911.  You'd think they'd have something similar for shutting down a stock, or an exchange.

But nope, Nester gets a free pass because he only follows the three laws.

1. Parse the Chairsatan/News

2. Parse momentum

3. BUY BUY BUY or SELL SELL SELL

It can't hurt you, see, it's got the protection of the three laws.  It can never disobey them. 

Fri, 06/03/2011 - 13:14 | 1336580 Dr. Acula
Dr. Acula's picture

>You know, they fine dumbasses who accidently call 911.  You'd think they'd have something similar for shutting down a stock, or an exchange.

There is no need to have an explicit fine.

For the crime of valuing stocks incorrectly, the market already has a punishment: financial losses. Just leave the exchange open and let the chips fall where they may. Soon enough these people and their crazy algorithms will be put in a position where they can't hurt anyone with their bad decisions.

Fri, 06/03/2011 - 13:50 | 1336766 NotApplicable
NotApplicable's picture

Let the algos fail? Are you crazy? If not for them, why there wouldn't even be a market.

/sarc

Fri, 06/03/2011 - 13:11 | 1336561 Dr. Acula
Dr. Acula's picture

Why do the exchanges reverse trades that were done fair and square? Why do they suspend trading in certain stocks?

Is it some kind of government intervention that forces them to do it? Or are they doing it freely and competing with other exchanges on the market in order to please their big stock-trading customers? Or is it to please their listed companies?

If the exchanges are freely competing then you can try to choose an exchange that has fair rules and doesn't pull these shenanigans. Which exchanges stand above their peers as doing the least interfering with validly executed trades?

Fri, 06/03/2011 - 13:14 | 1336566 surfer
surfer's picture

Stealth QE3 - already with us - if you cant be the demand - then create demand - Yellen?? - commodity and equity takedown coming to a movie near you soon. Deflation hits the new new thing.

Fri, 06/03/2011 - 13:15 | 1336586 monopoly
monopoly's picture

And you want me to "invest for the long term". Sure, no problem. This market is not happy. Where is the head inmate when we need him.

0

Fri, 06/03/2011 - 13:20 | 1336613 Dick Darlington
Dick Darlington's picture

This is all they got left. Destroy the dollar and ramp up equities. The worse the company the better. Markets are dead, real economies are dead, only surreal bankster dominated parallel paper world is flourishing.

06-03 12:43: AUD/USD and NZD/USD move higher as the USD-Index weakens and risk-appetite gathers pace; AUD/USD prints session high at 1.0748
Fri, 06/03/2011 - 13:42 | 1336718 Manthong
Manthong's picture

One of these days some algos are going to go all stuxnet on them and they won't be able to patch it up with a quick wink and a nod.

Fri, 06/03/2011 - 14:03 | 1336805 NotApplicable
NotApplicable's picture

The surprising thing is that it hasn't happened already. Which, even more surprisingly implies there are still some controls in place that actually work to contain the damage. Of course, they are designed to prevent yesterday's known problems, while every tomorrow brings new unknowns into the equation.

In a battle of complexity (high energy state) vs. entropy (lower energy state), entropy wins every time (on a long enough time line). And if you continually compress time with faster and faster computing resources, it can all go *poof* in an instant. In the coming future, two seconds will seem like infinity to these algos.

Fri, 06/03/2011 - 13:44 | 1336740 Texas Ginslinger
Texas Ginslinger's picture

These flash crashes remind me of the scene from The Matrix, where Neo sees the cat twice – glitch in the system.

 

Huge red flag.

 

 

Fri, 06/03/2011 - 14:10 | 1336827 Hooter Shaker
Hooter Shaker's picture

"Ginslinger"?  Did you get banned as "Gunslinger"?

Fri, 06/03/2011 - 15:21 | 1337148 fuu
fuu's picture

it's Hamy.

Fri, 06/03/2011 - 14:12 | 1336840 SheepDog-One
SheepDog-One's picture

Robotrader did you own this? Wait what am I saying, of course you didnt, its crashed. You only own things that closed up.

Fri, 06/03/2011 - 16:26 | 1337457 Barb Dwire
Barb Dwire's picture

Can someone explain the significance of the 22900 number? Do 23000 shares represent some significant threshold?

Apologies, I'm on the beach in Mexico enjoying the profits from my DIA and silver puts!

Fri, 06/03/2011 - 17:50 | 1337701 Downtoolong
Downtoolong's picture

Every time my GPS voice says something like, “right turn in 24ft when I’m travelling at 35 mph; or when it routes me through some alley behind a biker bar and past the loading docks instead of taking a boulevard, just to shorten my travel distance by ¼ mile, or when some high frequency trading computer sells a $40 stock for two cents, I realize just how dumb smart technology really is.   

Fri, 06/03/2011 - 22:04 | 1337702 chirobliss
chirobliss's picture

Really?? Bitauto??

 Bitauto Holdings Limited provides Internet content and marketing services for the automotive industry in the People?s Republic of China.

Call me when this hits a company anyone actually trades.  This pos reverse takeover averages 50,000 a day on a big day.  Every time I see this story it is about some obscure ticker I've never heard of.  Yeah it's a problem but not a big one any more.  The HFT's have slunk away having realised the pool aint big enough when all you're doing is stealing food from the other piranha's.  I trade every day and I haven't seen anything that makes my life particularly unpredictable.

Fri, 06/03/2011 - 19:17 | 1337972 Buck Johnson
Buck Johnson's picture

Either the market is so manipulated that other algorithms are messing up and doing weird things.  Or people and organizations are doing this in order to try to make a fast profit.

Sat, 06/04/2011 - 01:47 | 1338820 DrStrangelove
DrStrangelove's picture

I am setting orders on every no micro US listed stock at $0.10...

 

Fuck Skynet

 

http://nationaleconomist.blogspot.com/

Sat, 06/04/2011 - 01:49 | 1338822 DrStrangelove
DrStrangelove's picture

and FUCK robots, John Connor shall prevail

Sat, 06/04/2011 - 01:53 | 1338824 DrStrangelove
DrStrangelove's picture

Sue after the 10th cancel imho

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