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Today's Flash Crash: 75% Loss On A $10 Billion Market Cap Company In One Second
While the European economy is imploding, the Chinese are struggling to hide 10% of their GDP in bad debt, and the US is scrambling to come up with a compromise to the debt ceiling, which is so far not even close with only 10 days left until the July 22 deadline (no, it's not August 2), one can be forgiven to forget that the US stock market continues to be nothing short of a crime scene. We are happy to remind you. Nanex has just spotted today's flash crash du jour, which promptly took $10 billion Brown Forman from $70 to $16.64, a 75%, or $7.5 billion, loss, in about one second. No, not a fat finger: an algorithm, which hit every bid on the way down for precisely 8,409 shares. We fully expect the pustular math Ph.D. (most likely out of Getco) to be promptly relieved of any responsibility for coming up with a massively wrong algorithm, as the NYSE shortly cancels all the bad trades. If nobody else is punished for their mistakes, why should the parasites who churn our stocks be treated any different?
BF.A - Brown Forman
Trade and Quote Prices/Sizes:
Price Only:
Time and Sales prints:
ts|BEGINSTREAM|eBF.A|20110712|093000||
ts|t|Symbol|Listed Exg|Reporting Exg|Date|Seq #|Exg Time|Price|Size|TCondition|
t|eBF.A|NYSE|NQEX|20110712|8241|09:30:01|68.29|300|IntermarketSweep|
t|eBF.A|NYSE|NQEX|20110712|8242|09:30:01|68.29|300|MCOfficialOpen|
t|eBF.A|NYSE|BATY|20110712|8243|09:30:01|69.28|200|IntermarketSweep|
t|eBF.A|NYSE|BOST|20110712|8245|09:30:01|69.28|200|IntermarketSweep|
t|eBF.A|NYSE|NQEX|20110712|8277|09:30:01|68.29|300|IntermarketSweep|
t|eBF.A|NYSE|NQEX|20110712|8302|09:30:01|68.29|100|IntermarketSweep|
t|eBF.A|NYSE|NQEX|20110712|8303|09:30:01|67.79|200|IntermarketSweep|
t|eBF.A|NYSE|NQEX|20110712|8313|09:30:01|67.79|100|IntermarketSweep|
t|eBF.A|NYSE|PACF|20110712|8315|09:30:01|69.44|100|MCOfficialOpen|
t|eBF.A|NYSE|PACF|20110712|8316|09:30:01|69.44|100|Regular|
t|eBF.A|NYSE|PACF|20110712|8317|09:30:01|69.28|700|Regular|
t|eBF.A|NYSE|NQEX|20110712|8318|09:30:01|52.53|569|Regular|
t|eBF.A|NYSE|NQEX|20110712|8335|09:30:01|52.53|131|Regular|
t|eBF.A|NYSE|NQEX|20110712|8336|09:30:01|51.73|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8337|09:30:01|51.72|100|Regular|
t|eBF.A|NYSE|BATY|20110712|8341|09:30:01|51.72|200|Regular|
t|eBF.A|NYSE|NQEX|20110712|8343|09:30:01|48.51|300|IntermarketSweep|
t|eBF.A|NYSE|BOST|20110712|8352|09:30:01|51.72|200|Regular|
t|eBF.A|NYSE|NQEX|20110712|8355|09:30:01|48.51|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8356|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8357|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8358|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8359|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8366|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8367|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8368|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8369|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8370|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8371|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8372|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8373|09:30:01|48.50|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8408|09:30:01|33.95|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8414|09:30:01|33.95|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8429|09:30:01|33.95|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8433|09:30:01|33.95|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8445|09:30:01|48.52|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8446|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8447|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8461|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8462|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8463|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8464|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8465|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8497|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8523|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8544|09:30:01|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8566|09:30:02|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8593|09:30:02|23.77|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8596|09:30:02|16.64|100|Regular|
t|eBF.A|NYSE|NYSE|20110712|8598|09:30:02|71.55|200|Regular|
t|eBF.A|NYSE|NYSE|20110712|8618|09:30:02|71.54|100|Regular|
t|eBF.A|NYSE|NQEX|20110712|8683|09:30:03|70.41|100|IntermarketSweep|
t|eBF.A|NYSE|NYSE|20110712|9004|09:30:05|72.00|100|IntermarketSweep|
t|eBF.A|NYSE|PACF|20110712|10301|09:30:14|71.62|209|Regular|
t|eBF.A|NYSE|PACF|20110712|10302|09:30:14|71.61|100|Regular|
t|eBF.A|NYSE|PACF|20110712|10303|09:30:14|71.59|100|Regular|
t|eBF.A|NYSE|PACF|20110712|10304|09:30:14|71.59|100|Regular|
t|eBF.A|NYSE|PACF|20110712|10305|09:30:14|71.59|100|Regular|
;ts|ENDSTREAM|eBF.A|20110712|093000|@|
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It's a "transitory" flash crash. Sheesh. As long as the SPY doesn't get hit the power mad morons do not care...until they do.
I need LULU to have a flash crash to $0.
No!
It can't be!
China is going to save the euro and Eurozone!
/sarc
That has got to be what's lifting the eurusd today!
C'mon....you have to admit that the landmines make the 100 yard dash that much more exciting.
Ayatollah Khomeini used children to clear land mines by running them through them during the Iran-Iraq war. Saddam Hussein started using nerve gas on those children to prevent it.
I read that they didn't run. They wrapped themselves in blankets and rolled in front of the troops and vehicles.
the blankets made for a more complete burial.
That was an awesome 10 year war, old Nicholo M. wept tears of manly pride i bet.
Poison gas you say? Sounds expensive. Wonder who they bought it from...
It was a gift....
LOL
Hyper-Deflation
hahaha
anyone who was lucky enough to buy them from the algo should be allowed to keep them
Enforcing trades would be death to HFT. The death of HFT would elimate 70% of trading volume. That would allow markets to fall.
And this is a problem becaaaaaaause.......????
I agree. The lucky buyers at the bottom should be able to keep their purchases. It would increase market participation if you knew you could hold on to a few "flash crash" bargains.
Does anyone know of any premonitory signs of a "flash crash"? "Flash crash imminent" detection software? If traders could keep their profits, this would be a big industry.
probably running on Microshite ...surprised it doesn't crash every fuking day!!!
while True: buy()
But....but I thought this was fixed.
Confidence inspiring. Mary Schapiro hard at work.
The biggest cognitive dissonance for average Joe and Jane is accepting that their leaders are not only not trying to 'fix' the problems, but are trying to make money for themselves and their friends/contributors/controllers off of these problems.
The average Joe simply can not conceive of the evil they face because it is so beyond what they imagine is going on. It is one thing to say you know evil and another entirely to come face to face with that very same evil.
For almost three years now, I have been coming face to face with evil. All one need do is turn on the BlowHorn [CNBC] and observe how the media has turned away from its duty to talk about said evil [the fourth estate], as equities melt up on no volume...all the while, the BlowHorn trumpeting a new golden age of wealth creation through money printing. Tyler's words today are very applicable..."the US stock market continues to be nothing short of a crime scene." And EVERYONE can see it.
And pair with this a Federal Government running wild, threatening Armageddon if they don't get more of our money to choose winners and losers with as freedom and liberty are perpetually boot stomped into the ground with the help of crony corporations.
And on and on...and BTW...I am Average Joe! And it isn't just me now peering behind the curtain to see the wizard.
Rome is ablaze, and I rather doubt I am one of a select group that can see and smell the smoke.
Cdad,
While many people smell smoke they simply do not wish to look. Sure they understand that 'something' is wrong. But as long as they can feed their denial most will. As demoralizing as that is there is no getting around this fact.
Take some time to study what happened in Germany, Italy and Japan in the run up to war. Contrary to what people wish to believe, the insanity was eventually greeted with open arms once things got so bad that people decided to sleep with the devil that promised them more than they had.
This is why I hammer away at looking within. All the Big Lies start within us. The sociopaths don't lie to us asmuch as they tell us what we want to hear. Or at least enough of us to marginalize the rest of us.
I understand and respect you analysis, brother Cog. However, the thing you suggest, namely that folk refuse to look at the evil, is not born out by key facts.
Is it not true that equity outflows continue at pace, including the liquidation of retirement assets? Is it not the case that BlowHorn viewership continues to fall through the ratings floor, along with newspaper subscriptions, with these outflows flowing in to alternative media? Is it not the case that Average Joes everywhere are being laid off, and their participation in the labor market now stands at generational lows? Isn't it true that silver continues to be hoarded by the masses, and that the demand for this commodity is driven by investment and not industrial demand? Gold? Isn't it the case that during the last election cycle, folks sent Tea Party candidates to Congress to stop the spending?
My suggestion is not that you are wrong in a wholesale sense, but rather that the worm has turned, as far back as three years ago, and simply playing the card that suggests the general public at large is ill informed...does not align itself with the above facts.
I do not see the open arms of which you speak, although I understand the argument you are suggesting.
Cdad,
You are talking about the market. I am talking about average Joe. Average Joe knows little to nothing about CNBC or equity outflows. I'm not saying people are totally ignorant and unaware. I am saying they are trying to close their eyes and walk past the car wreck.
Some are taking loans on their 401(k)'s and I suspect some of the outflows has to do with people who are fired/laid off taking a distribution rather than rolling it over and reinvesting. Same with IRA distributions. Several of my clients have done precisely that just to live.
The average Joe pays little attention to the business news or just gives it a passing glance. Go have lunch in a restaurant in Middle America and do an informal survey of the people sitting around you. They might be worried about the economy, but they push it aside and think about bills and kids and TV. And they don't think about the stock market. It goes in one ear and out the other.
They look at their statements once a quarter and move on. When that statement is down 20%, then they pay attention. But even then they feel helpless and so they don't do much more than worry for awhile, then think about other stuff. This is apathy born of helplessness.
Anecdotally I can tell the story of a very good friend who fits your description. He is a medical research doc, with a 401k. He took a huge hit just like everyone else did. Even over numerous lunches during which I told him to expect the same scenario again, he has done nothing. His belief that "it will come back" and that TPTB are doing all they can do make his fantasy come true causes him to lock up intellectually. He is a very smart, very well paid, and personable fellow (which puts him in the higher percentile of the population), and if he doesn't get it, imagine the legions who are even more clueless.
Once fascism really takes hold, I wonder how long of a run the US will make. We're not Germany, surrounded on all sides by potential enemys. We're about to live in interesting times.
CD, that's the best thing I've read all day, and all too true. Too bad most won't hear it, even here, and look inside for where the real problems begin. I found CS Lewis' "That Hideous Strength" a good read on how people who aren't basically bad get led into doing very bad things all too easily. The first time I tried reading it, I couldn't because I was one of the people it was talking about...I've since grown up a little.
The Lewis triology is a hard read. At least it was for me. Being told that God allows misery and pain is like medical research on dogs. They experience agonizing pain but it's for the better good. Buncha crap.
You should have taken the blue pill. I would disagree, many people are catching glimpses, but they don't see it, not like we see it. It makes me wonder how long the smoke and mirrors have been in place, how deep the rabbit hole really is. Perhaps the blue pill IS the better play.
Right. I thought after a 10% fall all trading was automaticaly halted for an hour. Yeah sure!
Hard to believe that retail left the market in May 2010 and hasn't been heard from since.
When volume drops another 50% from here, and the only players left are churning HFT's, will fired (because of no volume) wall street employees start demanding change in market structure?
Remember 70%+ of all stock transactions are off the major markets. What you see on Bubblevision is far less than 1/3 of what actually is happening in the shadow stock market and dark pools.
The usual house line is still:
Dow 13K retail will come rushing.....
Im not sure if Etrade accepts food stamps in trading accounts.
Give it 6 months and they just might ;)
EBTrade?
Food stamps would be classed as Tier 1 collateral with the ECB....
"Back to M·A·C" empties Tier 2.:->
Im investing in *cntrl alt del* buttons, they must be wearing them out like crazy on Wall St these days.
Partially reversable meltdown -- no problems to see here -- plenty of liquidity..
So.. the algo decided to SELL TO buyers at an ever lower price? Why bother?
So.. the algo decided to SELL TO buyers at an ever lower price? Why bother?
Glitch in the matrix. Nothing to see here people, move along, resume buying 100 P/E retail bubble paper....
You need an algo to microsecond like forward the paper cert in order to beat the other algos.
It is that damn Skynet doing this on purpose, getting more funds to drone development.
Bam! SO who made money on that?
Some grandma in Cunningham, Kansas just shouted "bingo".
Confidence inspiring, yeah..
Jeezus H Christ - it's getting tricky to know whether anyone has actually traded anything - now you have to wait for the revised scoresheet
How is it that all the limit orders in place added up to only 8000 shares on a company with almost 1.5 billion shares outstanding?
no liquidity
no liquidity
OK let me see if I understand.
JPM screws the silver market - and gold along with HSBC and other crony orgs.
USDA stuffs the corn and softs specs
The NYSE does selecting what has actually been allowed through as a valid trade
The locals gang up with the Morgue etc to fuck up anyone who wants to do some options
The nank shares destruction duties with tricky JC on the cash FX
The ratings vipers stick a hickey into any nation uppity enough to have spent a bit more than it could afford, thinking to emulate the nank
The HFT and directional algos generally make like a berserker whenever thin conditions tempt their handler to let them off the lead - any market they want to pillage
The fed, CB's and proxies (think morgue) fuck up everyone else REAL bad with monopoly money and imaginary metals
China learns fast and waits in the wings for its own turn to have the fun.
I feel like I musta left summin out.....
Yup, the squid takes care of the country level bullshit, and dear old BOA etc do the real estate.
And none of these decent upstanding criminals will share one red cent of their proceeds of corruption with me.
Bingo.
The incompetence of regulators in this country truly beggars belief
So let's see, the trade before executed at 16.64. The next trade went of at about 71.50. Does that not pique anyone's interest?
The incompetence of regulators in this country truly beggars belief
We're never going to see any volume if they keep cancelling all the orders like this. Sheesh.
Next time, some smarter folks should remind the idiot Bernankish that all markets are transitory, he should NOT intervene.
4 week bills: .02% 13+ % at high
Rally ho!
Can somebody please arrange a "flash crash" on physical silver so I can load up some more?
And let me know 12 hours in advance. Please...
Roger that.
OK let me see if I understand.
JPM screws the silver market - and gold along with HSBC and other crony orgs.
USDA stuffs the corn and softs specs
The NYSE does selecting what has actually been allowed through as a valid trade
The locals gang up with the Morgue etc to fuck up anyone who wants to do some options
The nank shares destruction duties with tricky JC on the cash FX
The ratings vipers stick a hickey into any nation uppity enough to have spent a bit more than it could afford, thinking to emulate the nank
The HFT and directional algos generally make like a berserker whenever thin conditions tempt their handler to let them off the lead - any market they want to pillage
The fed, CB's and proxies (think morgue) fuck up everyone else REAL bad with monopoly money and imaginary metals
China learns fast and waits in the wings for its own turn to have the fun.
I feel like I musta left summin out.....
Yup, the squid takes care of the country level bullshit, and dear old BOA etc do the real estate.
And none of these decent upstanding criminals will share one red cent of their proceeds of corruption with me.
Bingo.
Roger that. ;-)
Software glitch.
anyone know what "IntermarketSweep" is?
You want to go for garden hoses, batteries, and the BIG hormone-filled Butterball turkeys -- from what I remember.
I'm pretty sure the stock market computer is connected to one of those light timers people use when they go on vacation. The markets will merge when Dick Grasso donates one of those high tech lawn timers with multiple zones, each connected to a different trading floor's Commodore 64.
The next global flash-crash is going to occur on March 11th 2012 - said it here folks. The technical janitor will forget to change it for daylight-savings, and liquidity will dry up by 90%...
If you're privy to info like that, why are you poor?
Another financial meth lab blows up. The problem here is, it's not just the perp who ends up with third degree burns.
Should I issue limit buy orders on a hundred different stocks hoping to pick them up at a 75% discount? Can ETrade get in there fast enough to snatch a few thousand shares?
Am I the only one who followed the BitCoin heists, and marked the use of aggressive algo's that worked precisely like this? It filled every buy order on the way down, thus devaluing the currency, in a bid to a) allow mass buy back @ nothing and b) get around a $1000 withdrawl cap (that didn't actually exist, but there we go).
Some kid got a bid in for 0.0101, shoved his entire bank behind it ($3k or so) and cleaned up $5 million worth [mid range] of BitCoin (250k or so) before the algo could buy back.
Or is BitCoin just kiddies' coins around here? I always imagined they'd be semi-popular.
Bitcoin: tulip mania for geeks... to think all that computing power could be used for something a bit more useful.
Agreed. http://www.scientificamerican.com/article.cfm?id=your-idle-computer-coul...
Then again, looking at the security issues being exploited to take down the exchanges, I'm not 100% sure that all the mining was so pointless. The old adage is that "mining = password cracking", although it is always denied. [http://forum.bitcoin.org/index.php?topic=20402.0 ]
In reference to the article, I was comparing the HFT algo models with a similar technique used on a similar mechanism [Mt Gox] - and raising the issue of the why of it all.
Like raising betta in a tank just to breed the best ones to dump into a rival breeder's tank filled with vegetarian species.
bitcoins are a scam and anyone that buys them will get what they deserve
Exposition of your thesis would be appreciated.
These are the consequences of market fragmentation. During the first 2 seconds after market open, before any bids going through NYSE were posted, the consolidated tape showed the best bids to be on BATS Y-Exchange, Nasdaq and Boston, via which HFT's orders were placed, even though the Pacific Exchange had better bids. This could have happened to any one of you had your stockbroker directed your market order with the automated help of the consolidated tape.