UK Stocks Flash-Crash As BP, Banks Plunge; LSE Investigating

Chatter of a fat-finger trade, then exaggerated by the algos, has smashed UK's FTSE 100 lower instantly this morning, dragging major firms with it...

• *HSBC DROPS 4.8% IN UK TRADING, QUICKLY REBOUNDS TO 2.3% LOSS
• *BP DROPS 4.7% IN UK TRADING, QUICKLY REBOUNDS TO 1.8% LOSS

As with all these plunges, the machines BTFD but the rebound is weak.

As Bloomberg noted:

• *FTSE 100 SUDDENLY DROPS TO LOWS, FALLS 1.9%

More desk chatter seems to confirm a massive seller dumped a basket of FTSE 100 stocks at 0744ET.

Do not fear, the regulators are on it...

• *LSE INVESTIGATING SUDDEN MOVE IN FTSE 100 INDEX, SPOKESMAN SAYS
• *NO TRADES HAVE BEEN CANCELED, LSE SPOKESMAN SAYS

Of course in the new world, post-Yellen's press conference yesterday, we wonder...

Did the FTSE flash crash just derail the December rate hike? Is UK market stability the Fed's 5th mandate? cc: @federalreserve

— zerohedge (@zerohedge) September 18, 2015

Charts: Bloomberg

Comments

[stocktivity]

What does Yellen know that we don't!  Is China's selling of their US holdings causing a concern? Deflation?   A major US or overseas bank in trouble?   Something changed the Fed's thinking.

[VinceFostersGhost]

How far down the rabbit hole would you like to go?

No worries.....flash crashes are pretty much the norm these days.....just roll with it.

[tc06rtw]

 
  _{What does Yellen know that we don’t?…}
 
 
I find it hard to believe that Yellen knows
                                       ANYTHING !

[DeadFred]

Let's see we were in an ascending triangle and yesterday there was a false breakout followed by a significant breakdown... what could possibly go wrong? LOL it will be interesting to see if They even try to catch this one or were they already positioned to let it drop. I'd put some money on this but the PM breakout seems to be starting and it will be way more profitable.

[Pure Evil]

Too bad supplying my Cocaine and Heroin addiction wasn't Mr. Yellen's 6th mandate.

[Oldwood]

Bankruptcy

slowly at first

and then all of the sudden

[RawPawg]

she now knows how to read the writing on the wall,just like fellow ZH'ers do.

[buzzsaw99]

-1 BITCHEZ. ZH KNOWS WAY MOAR THAN YELLEN. ZH KNOWS WHAT YELLEN IS GOING TO DO EVEN BEFORE YELLEN KNOWS WHAT YELLEN IS GOING TO DO.

[chiswickcat]

The 'flash' crash was a 'crash' but PPT servers kicked right in.

[RawPawg]

Crashes...Something we all better get used to hearing,and seeing....the new norm.

[Oldwood]

No crashes, only corrections.

its about language and definition.

Everything we have seen has been the rise of finding words, language, that makes threats into passivity, and passivity into threats.

[Dr. Engali]

Yellen today after her dovish gift to wall street: "That's not how it works. That's not how any of this is supposed to work. Fuck you Bernank!"

[saints51]

CNBC website is saying exactly that. A fat finger caused the down move. Here is the link if you want a laugh.

http://www.cnbc.com/2015/09/18/european-markets-to-open-lower-post-fed.html

Is it a fat finger error when we have 400 point up move days? Is it a fat finger error almost every day starting at 3:30pm est when the market start to ramp on pixie dust?

[Oldwood]

Stop arguing against the manipulation of perception. Hell ain't half full yet.

[saints51]

hehe

crude crashing. close to $45.50 already pre pit open.

[Latitude25]

I guess that means that the algos read yellens speech and are set to make money all the way down off of the sheep.

[MSimon]

HSBC DROPS

The dope trade is in decline. More Prohibition needed. I wonder if nuking Colorado will help? Of no matter. The Fat Man from NJ has promised to help. If he gets elected.

[silverer]

New Jersey.  A good place to be from.

[29.5 hours]

Correlation: The more computers do the trading, the more "fat fingers" we have.

[ZippyDooDah]

How 'bout the Fed moves to China and regulates their market?

[silverer]

Let's face it: It's tough to read a market that's traded 80% by computers which use algos to determine the buy and sell points.  But that's exactly the problem.  The Fed should not be looking at the market at all to make its decisions.

[Horseless Headsman]

Obviously they don't trade in the PM market. We're used to such things.

[theyjustcantstop]

I figure the BOE, "BIS", just bought, "moved" roughly 2% the ftse 100, onto their side of the ledger.

[Youri Carma]

Here we go again: "Will they raise rates in Decemeber?". This time I will decouple from that debate because NIRP and QE4 are on the table.