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Massive "Fat Finger" Seller Appears In Swiss Francs

Tyler Durden's picture




 

One glance at the 'ticks' surrounding this morning's so-called "fat finger" in EURCHF and it is clear that this was anything but a human trader falling asleep on his keyboard or accidently selling 100 yards and not 100 million CHF... Welcome to the 'unrigged' markets... (in FX also)... where stop-hunting algos rip to a 50-day moving-average in milliseconds to remove all stops before fading back ingloriously to unchanged. As Nanex suggests, this started in the CHF futures market...

 

The ramp took EURCHF up to its 50DMA before fading back...

 

And appears from the adjusting bids and offers to be anything but a fat finger error...

 

and here is Nanex with the close up in the CHF futures market...

On April 16, 2014 at 10:35:24, about 1800 Swiss Franc Futures contract suddenly dropped prices in 1 second. Prices mostly recovered over the following 12 seconds.

1. June 2014 Swiss Franc (6S) Futures on April 16, 2014



2. Zooming in


 

Fat finger - or algos gone wild?

 

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Wed, 04/16/2014 - 11:01 | 4665070 PlusTic
PlusTic's picture

ALGO's gone crazy!  shut these fukks down already...this is a daily occurence...

Wed, 04/16/2014 - 11:07 | 4665097 Kirk2NCC1701
Kirk2NCC1701's picture

Blonde algos on tramp-o-lines, causing bouncy benefits.

Wed, 04/16/2014 - 11:20 | 4665150 max2205
max2205's picture

I once knew a girl named Algo

She was a trader with Goldman

 

She was fast on her feet

 

And she seemed kinda sweet

 

Except her vag smelled like squid

Wed, 04/16/2014 - 11:46 | 4665273 CHX
CHX's picture

I think you're talking about some Olga here...

Wed, 04/16/2014 - 13:47 | 4665877 Four chan
Four chan's picture

give em a millisecond and they will take a second.

Wed, 04/16/2014 - 11:15 | 4665132 monkeyboy
monkeyboy's picture

So I think your saying that these markets might be rigged???

Wed, 04/16/2014 - 11:02 | 4665077 Kaiser Sousa
Kaiser Sousa's picture

its all just fucking bullshit...

i just watch to see how fucking much more stupid it gets on a daily basis...

watch, ignore, and buy more SILVER...

period.

Wed, 04/16/2014 - 11:12 | 4665119 I Am Not a Copp...
I Am Not a Copper Top's picture

Couldn't agree more.  The more "stoopid" it gets the more metal I stack.  Call it therapy or whatever.  It makes me feel good now and will make me feel even better when the wheels finally come off of this thing.  Although things will generally suck for most others and I will not be able to gloat about it.

Wed, 04/16/2014 - 11:04 | 4665085 LawsofPhysics
LawsofPhysics's picture

Just another oligarch getting their "fair share".

Wed, 04/16/2014 - 11:04 | 4665086 Dr. Engali
Dr. Engali's picture

Damn Waddell and Reed screwing things up again.

Wed, 04/16/2014 - 11:07 | 4665094 Cdad
Cdad's picture

LOL!  These incompetent criminal bankers still think we check the back pages of the financial newspaper to see what happened in "markets."  Good grief!  How obvious does it all have to get before "ropes and lamp posts" becomes popular in Google search terms?

It is ridiculous...and the idea that this "market" will continue is absurd.  Crash helmet ready?  Just watch the RUT...it is telling you everything you need to know.

 

 

Wed, 04/16/2014 - 11:10 | 4665095 medium giraffe
medium giraffe's picture

Loving the random 30 pip spike on the eur/chf spot.  Have the algos been fooled into thinking there's a usd/chf rally on here too?  lol

Wed, 04/16/2014 - 11:08 | 4665103 Archduke
Archduke's picture

just saying april 16 is vix options and futures expiry...

Wed, 04/16/2014 - 11:42 | 4665248 DavidC
DavidC's picture

That's...TODAY!

DavidC

Wed, 04/16/2014 - 11:12 | 4665116 venturen
venturen's picture

Thank you, Sir! May I have another beating?

Wed, 04/16/2014 - 11:13 | 4665121 Bill of Rights
Bill of Rights's picture
Ukrainian pro Russia presidential candidate is beaten

https://www.youtube.com/watch?v=gLvB_f2FesY

Wed, 04/16/2014 - 11:26 | 4665172 ebworthen
ebworthen's picture

It's those peace loving Western Ukranian's, who want to join the peaceful E.U. and U.S., doing the beating.

"Please, we must have peace at all costs" as they put unelected neo-Nazi's in power and send troops to put down those who protest unelected leaders.

Wed, 04/16/2014 - 11:17 | 4665142 youngman
youngman's picture

What is the end game for this....to get the price down....so they can buy more...or is it just showing how weak the markets really are....or a show of strength by the HFTs.....just a shot across the bow for the rest of us....when they do attack in force..how low can they take it....????  close to zero I bet...

Wed, 04/16/2014 - 11:21 | 4665152 Cdad
Cdad's picture

Ah...we're in the territory when one morning soon, the whole joke "market" opens 15% lower, and grinds lower from there.  Good luck.

Wed, 04/16/2014 - 11:37 | 4665220 GFORCE
GFORCE's picture

Whether its a fat finger or not, it's just a market reaction to thin volume and a big order which gets filled across a wider range of price. Considering the CHF pegs its currency at 1.20 this could've been anything... SNB trades, hedge fund...

Wed, 04/16/2014 - 11:30 | 4665191 Glass Seagull
Glass Seagull's picture

 

 

One man's fat finger is another man's manipulation

Wed, 04/16/2014 - 11:31 | 4665192 mayhem_korner
mayhem_korner's picture

 

 

I'd like you to meet my friends Al and Go.

Wed, 04/16/2014 - 11:33 | 4665198 Fuh Querada
Fuh Querada's picture

" Yet the huge volume of HFT orders adds liquidity to the market."

JGRicktards

http://www.standard.co.uk/comment/james-rickards-beware-the-worst-avalan...

Wed, 04/16/2014 - 11:33 | 4665200 mayhem_korner
mayhem_korner's picture

 

 

"Fat finger" is bankspeak for "wealth transfer."

Wed, 04/16/2014 - 11:40 | 4665237 harrypotter
harrypotter's picture

Every Buyer has a Seller and Every Seller has a Buyer , so its not rigged, clean trades..........

Wed, 04/16/2014 - 11:41 | 4665243 headhunt
headhunt's picture

How about a financial penalty for these fat finger f**Ks

Wed, 04/16/2014 - 11:44 | 4665262 A_Nejad
A_Nejad's picture

Damn them Belgians!!!

Wed, 04/16/2014 - 11:44 | 4665263 Azannoth
Azannoth's picture

I think there is Method in this Madness not just craziness

Wed, 04/16/2014 - 11:45 | 4665266 CHX
CHX's picture

SNB stopping out some of those unwanted FX "speculators", me reckons. CHF no safe haven, it's pegged to the EURO, and until things break (and I mean really break), SNB will defend the 1.2 level at all costs. All fiat will burn, CHF included. 

Wed, 04/16/2014 - 11:48 | 4665284 Milton Waddams
Milton Waddams's picture

Sweep them stops. Domo Arigato

Wed, 04/16/2014 - 12:06 | 4665372 elwind45
elwind45's picture

Someone likes the EURO because of recent banking union work?

Wed, 04/16/2014 - 12:50 | 4665566 NoWayJose
NoWayJose's picture

The algos have essentially destroyed the use of stop-loss orders -- unless you have your own algo that can cancel them in 0.2 milliseconds....

Wed, 04/16/2014 - 13:13 | 4665669 Nana
Nana's picture

SNBs wife doing it again!!!!!! Need some cash for the Easter Skii Holssssss Bitchzes......

Wed, 04/16/2014 - 13:30 | 4665784 TheBird
TheBird's picture

you realize that move is next to nothing right? A large order in spot .. chf or eur could easily spike the cross. Not everything is cross traded.

Wed, 04/16/2014 - 13:40 | 4665832 Uncle Remus
Uncle Remus's picture

Front-page blurb photo+avatar for this post looks like a stick man with Tyler's head at the top of a push-up.

 

Or just lack of sleep.

Wed, 04/16/2014 - 22:27 | 4667993 AvoidingTaxation
AvoidingTaxation's picture

Don't touch the Swiss. They're starting to be anxious.

Keep staking. I mean, Right now is the right moment to start buying some fucking Silver/Platin/Gold/Palladium.

Right now.

 

 

 

ricardo.ch  for the insiders :)

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