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SkyNet Is Now Cannibalizing Itself: BATS IPO Flash Crashes

Tyler Durden's picture




 

Presented with little comment - except the irony is simply too much to bear as BATS crashes from $15.75 to $0.038 in minutes...perhaps reflecting the WSJ article on HFT abuse and that BATS is being investigated for HFT abuse (ahem) on the day it goes public. We note that there were some trades executed at $0.00! The reason for the crash apparently is because BATS stock is ony trading on the BATS exchange, where apparently the APPL halt second before also happened. Pretty much tells us all we need to know about the stability of broken market structure. In other news, the stock, and exchange, have now been renamed BATShit - perhaps the VVIX can trade there next or something... And they wonder why nobody trades this farce of a market any more.

 

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Fri, 03/23/2012 - 11:25 | 2283545 stickyfingers
stickyfingers's picture

Margin of safety

Fri, 03/23/2012 - 11:29 | 2283565 HedgeAccordingly
HedgeAccordingly's picture

perfect because bats has had quote issues for two weeks now -http://hedge.ly/GIAJwV

Fri, 03/23/2012 - 11:40 | 2283610 vast-dom
vast-dom's picture

BATS making billions on that $0.00000000 to $0.000000000000001 manipulated trade. If this is viable biz model then we all deserve the great crash more at apocalypse.

Fri, 03/23/2012 - 11:39 | 2283638 johnQpublic
johnQpublic's picture

glad i sold my shares at 0.00 before they went negative

Fri, 03/23/2012 - 12:19 | 2283896 skistroni
skistroni's picture

Oh, no. I put a bid at -0.02 for 1,000,000 shares and it was not hit. Would have netted me 20K. 

Fri, 03/23/2012 - 22:39 | 2285856 Likstane
Likstane's picture

After the gap up from .001415 to .00149, I knew my put options for nov2013 were toast.

Fri, 03/23/2012 - 19:55 | 2285589 Buck Johnson
Buck Johnson's picture

It's getting funnier and funnier, BATS is done.

Fri, 03/23/2012 - 11:41 | 2283649 I should be working
I should be working's picture

zero is a pretty good margin of safety

Fri, 03/23/2012 - 12:21 | 2283908 William113
William113's picture

Go LOOOONG.

Fri, 03/23/2012 - 11:25 | 2283548 slaughterer
slaughterer's picture

Bullish!

Fri, 03/23/2012 - 11:32 | 2283549 TruthInSunshine
TruthInSunshine's picture

Skynet needs to be medicated (benzodiazepines & lithium).

 

I am sure that retail investors are becoming more comfortable with the notion of 'equity markets' as a stable, fair & non-corrupted (rather than galactically & massively rigged) avenue of asset class investment to help preserve and grow one's wealth. /s

Fri, 03/23/2012 - 11:27 | 2283550 Cdad
Cdad's picture

Lol...low print on BATS is $.0002.  High print after $16 IPO...lol...$15.75.  Oh...and 1.257 million shares traded.

Nice broken market.  Way to go Wall Street!

Fri, 03/23/2012 - 11:29 | 2283570 Cdad
Cdad's picture

I guess this is what folks get for getting in on the IPO...or getting long flash crashers.  Quick, on with BlowHorn [CNBC] programing that has nothing to do with anything.

Fri, 03/23/2012 - 11:32 | 2283575 Cdad
Cdad's picture

This is fucking hysterical!  Watching the book on it, it is utterly broken.  Can't seem to clear that ASK at 13 cents.

Confidence inspiring!

Fri, 03/23/2012 - 11:36 | 2283614 Cdad
Cdad's picture

LOL!  Turned on the BlowHorn radio stream just in time to hear Bob Pisani say, "This is just a liquidity problem."  LOOOOOOOOOOOOL!  HOOOOOTINANY!!

Yeah, that's right...liquidity.  Plenty now though, at 13 cents.  All fixed.

Good grief!

Time for a market holiday?

Fri, 03/23/2012 - 11:42 | 2283654 Hippocratic Oaf
Hippocratic Oaf's picture

Cdad.....the name is Bob Pissonme. And don't you forget it.

Fri, 03/23/2012 - 11:40 | 2283623 TruthInSunshine
TruthInSunshine's picture

No one need fret.

The Wall Street Pond Scum Journal is on top of the story (with perhaps the most understated title of the year):

 

BATS Swings Lower At IPO Open

Fri, 03/23/2012 - 11:46 | 2283683 SheepDog-One
SheepDog-One's picture

Dont worry! We've got The Bernank out telling school kids how kewl the FED is, as the last resort to anyone who might still believe him!

 

Fri, 03/23/2012 - 11:26 | 2283552 TheCanimal
TheCanimal's picture

I show only 100 shares traded @ .0384.  No further trades yet.

Fri, 03/23/2012 - 11:43 | 2283664 Hippocratic Oaf
Hippocratic Oaf's picture

1.2M at the halt

Fri, 03/23/2012 - 11:27 | 2283554 Sutton
Sutton's picture

The Detroitization of markets  grows apace.

 

Fri, 03/23/2012 - 11:52 | 2283708 Melin
Melin's picture

+1 for the use of "apace."

By "Detroitization" do you mean that the "helping hands" of the do-gooders are crushing the markets as just as they did Detroit?

Fri, 03/23/2012 - 11:27 | 2283555 LongSoupLine
LongSoupLine's picture

 

 

 

"Holy SkyNet BATSman!! - Robin

Fri, 03/23/2012 - 11:27 | 2283556 Lost Wages
Lost Wages's picture

The computers know what this market is worth: $0. The computers are smarter than the economists!

Fri, 03/23/2012 - 11:27 | 2283558 dwdollar
dwdollar's picture

Fat finger warfare?

Fri, 03/23/2012 - 11:28 | 2283559 spekulatn
spekulatn's picture

Buy with both barrels, bitchez.

Fri, 03/23/2012 - 11:28 | 2283560 Death and Gravity
Death and Gravity's picture

BATS? Batshit?

Fri, 03/23/2012 - 11:28 | 2283563 The Axe
The Axe's picture

I had a bid in at  at .03876    wtf     i want a fill lol  

Fri, 03/23/2012 - 11:39 | 2283637 disabledvet
disabledvet's picture

That's what I was thinking. "it ain't broken unless they break my trade.". And lest we forget this happened to Exxon/Mobil as well. Anywho..."the structure is fine...but the architecture is all wrong." For example i prefer my gargoyles on the ledge myself...not inside the building flying around again.

Fri, 03/23/2012 - 11:29 | 2283564 Dr. Engali
Dr. Engali's picture

That's a clear sign of a deep and liquid market no?

Fri, 03/23/2012 - 11:30 | 2283573 Schmuck Raker
Schmuck Raker's picture

I'm running low on derisive, cynical jokes today. TGIF

Fri, 03/23/2012 - 14:10 | 2284378 prains
prains's picture

your plunge protection has kicked in

Fri, 03/23/2012 - 11:30 | 2283577 LongSoupLine
LongSoupLine's picture

 

 

Note how the "market" ramping hard (gaps up) on these bad trades hitting.

 

Now, if there were "real people" in the market, tell me what would be happening...

Fri, 03/23/2012 - 11:30 | 2283578 AGuy
AGuy's picture

Could BATS and AAPL be linked. They both experienced a sudden drop at the same time. Or very close to the same time.

Interesting way to manipulate the market:

1. Buy a small amount of shares, perhaps a few thousand

2. Short the same stock

3. Sell off the shares at a steeply discounted prices. Make several trades with with the steeply discounted price

4. cover your shorts.

Lose Money on the shares you sold, but make money on the shorts.

 

 

Fri, 03/23/2012 - 14:26 | 2284442 Matt
Matt's picture

Yes, like BATS admitted, they had a technical problem involving ticker symbols between A and BF. If only there was a way to know which range of letters will be affected next ...

 

EDIT: Its Sasame Street Markets; today's crash is brought to you by the Letter A, the Letter B, and the Number 0.

Fri, 03/23/2012 - 11:31 | 2283579 Global Hunter
Global Hunter's picture

just cancel all the trades below 15.74 and call a do over.  Golfers call it a mulligan i think.

Fri, 03/23/2012 - 11:34 | 2283611 Dr. Engali
Dr. Engali's picture

As an avid golfer I pefer to call it cheating.

Fri, 03/23/2012 - 11:37 | 2283621 Global Hunter
Global Hunter's picture

thank you for clearing that up, while I"m not a golfer I can understand the concept of cheating.  Simple really.

Fri, 03/23/2012 - 12:05 | 2283804 TruthInSunshine
TruthInSunshine's picture

In 'the markets,' the Mulligan only cancels the losing side of the trade, bitchez.

Fri, 03/23/2012 - 11:41 | 2283653 SheepDog-One
SheepDog-One's picture

Calvinball.

Fri, 03/23/2012 - 11:30 | 2283580 Dapper Dan
Dapper Dan's picture

I thought you said cannibisize, if that was the case then super size me ;]

Fri, 03/23/2012 - 11:31 | 2283581 Al Huxley
Al Huxley's picture

This is one efficient market - TVIX yesterday, AAPL 'fat fingered' flash crash, now this.  Really inspires confidence in the general fairness of the markets.  Honestly, I trust carnis running games on the midway more than the fuckers behind these markets.

Fri, 03/23/2012 - 11:43 | 2283663 SheepDog-One
SheepDog-One's picture

Even shifty carnies know you must let the rubes win once in a while or they go away.

Fri, 03/23/2012 - 12:26 | 2283926 memyselfiu
memyselfiu's picture

Can I use that? That's spectacular

Fri, 03/23/2012 - 12:31 | 2283945 brooklynlou
brooklynlou's picture

Dear Goldman employee. Please desist from referring to Goldman Sachs clients as "rubes". The correct and approved term is "muppets". See memo 032112-0235 for instructions and examples of use.

Fri, 03/23/2012 - 11:31 | 2283586 youngman
youngman's picture

But zero is probably a good price for this exchange....

Fri, 03/23/2012 - 11:31 | 2283587 I am a Man I am...
I am a Man I am Forty's picture

fucking fidelity, when I put an order in on the ask at 0.0488 i expect you to do your job and fill it

Fri, 03/23/2012 - 11:31 | 2283589 jus_lite_reading
jus_lite_reading's picture

As any smart investor can see, this shows the safest place to store your retirement money is in the ponzi stock markets which ARE REAL money... unlike that yellow disgusting metal that is only a tradition and can not be used to buy iPads

Fri, 03/23/2012 - 11:34 | 2283605 slaughterer
slaughterer's picture

MDB, is that YOU?

Fri, 03/23/2012 - 11:31 | 2283590 Comay Mierda
Comay Mierda's picture

L O FUCKING L

Fri, 03/23/2012 - 11:32 | 2283594 SeverinSlade
SeverinSlade's picture

If this doesn't signal a market top, I don't know what does.

What else is going to fuel further ramps/levitation?  China and emerging markets are slowing/contracting, no QE3, no LTRO (despite rumors), the US decoupling story is being proven bullshit...Major market correction coming.  And no Bob PISSani, Cramer, etc. stocks dropping 1-5% is NOT the "correction."

Fri, 03/23/2012 - 11:35 | 2283613 slaughterer
slaughterer's picture

The latest bullish macro rumor is the PBOC RRR rumor!   Yippee!  Should hit by Monday morning futures. 

Fri, 03/23/2012 - 11:32 | 2283595 FXPortent
FXPortent's picture

Wow, BATS dropped at free fall speeds....

 

 

 

Fri, 03/23/2012 - 11:54 | 2283740 johnQpublic
johnQpublic's picture

and just like building 7, NO PLANE hit them

Fri, 03/23/2012 - 11:32 | 2283596 TheCanimal
TheCanimal's picture

Rumor is deal may be cancelled.

Fri, 03/23/2012 - 12:40 | 2283989 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Now THAT would be a Mulligan. FTW

Fri, 03/23/2012 - 11:32 | 2283597 east paris trader
east paris trader's picture

starting to make the comex look good...

Fri, 03/23/2012 - 11:33 | 2283600 fonzannoon
fonzannoon's picture

They are pulling apart the VXX now.

Fri, 03/23/2012 - 11:33 | 2283603 swissaustrian
swissaustrian's picture

Next: negative prices.

Fri, 03/23/2012 - 11:34 | 2283606 azzhatter
azzhatter's picture

Hilarious watching Bob Piss on me on CNBC trying to explain

Fri, 03/23/2012 - 11:37 | 2283629 Dr. Engali
Dr. Engali's picture

 

 "Bob Piss on me"

Okay confused. Does that reference have Bob pissing on you or is it Bob telling everybody else to piss on him? :->

Fri, 03/23/2012 - 11:44 | 2283668 TruthInSunshine
TruthInSunshine's picture

This explains the Wall Street Racketeering Syndicate and their proxy mouthpiece communication channels such as cnBSc as well as anything:

 

Piss on You - YouTube
Fri, 03/23/2012 - 11:51 | 2283702 Dr. Engali
Dr. Engali's picture

Now that is whacked...funny..but whacked.

Fri, 03/23/2012 - 11:48 | 2283692 azzhatter
azzhatter's picture

I believe it's Bob's request

Fri, 03/23/2012 - 12:34 | 2283960 Atomizer
Atomizer's picture

Bob's yearns for a golden shower.

Fri, 03/23/2012 - 18:36 | 2284164 fuu
fuu's picture

After about an hour on the tower of power.

http://www.youtube.com/watch?v=sPDJXUW4ikA

Fri, 03/23/2012 - 11:34 | 2283607 Zynga
Zynga's picture
Ace Ventura: Mmm, this fruit paste is delicious, and the pottery is lovely.
Ouda: It's made from guano.
Ace Ventura: Guano. Sounds so familiar.
[Ace starts licking the remains of the fruit paste from the bottom of the bowl]
Fulton Greenwall: Bat droppings.
[Ace drops the bowl spitting the remains of the paste and wiping off his tongue]
Fulton Greenwall: Guano is their chief resource, they use it to made many things in the village.
Ace Ventura: Yummy.
Fri, 03/23/2012 - 11:35 | 2283616 catacl1sm
catacl1sm's picture

If it weren't so funny it wouldn't be.

Fri, 03/23/2012 - 11:37 | 2283627 crawldaddy
crawldaddy's picture

skynet just became self aware. 

Fri, 03/23/2012 - 11:45 | 2283672 disabledvet
disabledvet's picture

And he's heading to the bar for the booze to get blitzed, shot down by women and boast about what an amazing robot he is! (then fall face first in the gutter. The End.)

Fri, 03/23/2012 - 12:45 | 2284008 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Then rehab then relapse.

Then rinse then repeat.

Self-knowledge will not help this monster.

Fri, 03/23/2012 - 11:38 | 2283633 SheepDog-One
SheepDog-One's picture

What else can you say but 'LMFAO!'

Fri, 03/23/2012 - 11:43 | 2283666 Cdad
Cdad's picture

Totally with you, Dog.  Fucking laugh fest here.  What sweet justice, in a public sense, that the flash crasher IPOs and then flash crashes, on the day that it is being investigated for...flash crashing.

Quick, on with a tumble-me-down-the-fucking-rabbit-hole story over at the BlowHorn, something about alpacas or fruit smoothie margin expansion.

Fri, 03/23/2012 - 11:48 | 2283689 SheepDog-One
SheepDog-One's picture

$8 rice burritos to the moon!

Fri, 03/23/2012 - 12:29 | 2283935 Non Passaran
Non Passaran's picture

I am delighted!

Fri, 03/23/2012 - 11:41 | 2283650 Red Heeler
Red Heeler's picture

 

BATS … Making Markets Better.

(BATS motto from yesterday's PR)

Sat, 03/24/2012 - 09:40 | 2286385 Money 4 Nothing
Money 4 Nothing's picture

"BATS … Making Markets Better. "

I agree, just depends on what side of the trade your on.

Fri, 03/23/2012 - 11:45 | 2283671 Widowmaker
Widowmaker's picture

Blowin out stops and calling it busted trades!  YEE HA!

 

Fri, 03/23/2012 - 11:49 | 2283697 SheepDog-One
SheepDog-One's picture

Man I wonder how many Wall St biggies went all-in on this launchpad detonation? omfg

Fri, 03/23/2012 - 11:54 | 2283727 adr
adr's picture

All of Wall Street just stops, stares, and says, "It wasn't supposed to do that. It was programmed to double itself. Fuck."

Fri, 03/23/2012 - 11:54 | 2283741 kralizec
kralizec's picture

Looks like Obama's real approval rating.

Fri, 03/23/2012 - 11:55 | 2283743 campag
campag's picture

Corzine brought you vaporization of client funds . Now it is the exchanges turn to rid you of your stocks

Fri, 03/23/2012 - 11:56 | 2283748 I should be working
I should be working's picture

Oh sweet irony

Fri, 03/23/2012 - 11:58 | 2283765 carbonmutant
carbonmutant's picture

BATS... aptly named for a suckers market.

Fri, 03/23/2012 - 12:05 | 2283807 rosiescenario
rosiescenario's picture

...just reading the WSJ article...and the SEC is still "reviewing" the 2010 flash crash....trying to figure it out...

 

HFTs are just a computerized method of front running....as such, they are illegal if the SEC just enforced the law. Of course that would distract them from their midget porn surfing...

Fri, 03/23/2012 - 13:29 | 2284190 aerojet
aerojet's picture

And really not a hard problem to solve, either.  You just throttle the the queues that receive the orders to eliminate the possiblity of doing this bullshit.  Buuuuuuuut, since algos are the only entities making trades anymore, without them, you would finally see what these stocks are worth--mostly zeros.

 

Bart Simpson:  How much is one million times zero?  And don't say zero!

Fri, 03/23/2012 - 12:20 | 2283904 Piranhanoia
Piranhanoia's picture

Maybe this is the actual value of batshit to a non farmer? 

Fri, 03/23/2012 - 12:33 | 2283954 Pasadena Phil
Pasadena Phil's picture

If that famous original flash crash really is one of the main reasons that volume, especially retail volume, has disappeared, what better stock to hit with a flast crash than Apple! The irony of BATS itself going to zero just proves that there is a God, a God with a sense of humor and a sense of justice.

Fri, 03/23/2012 - 12:35 | 2283966 El Yunque
El Yunque's picture

Cool, now we get to see whether BATS embraces the Darwin plan out of the gate and wait 65 million years for it to "evolve" or if we'll be subjected to 2 to 12 thousand years of creation "science" waiting for it to either be wiped out by a sea of worthless paper whereas the chosen computers will hop on a Newtian space ship to the moon two by two for survival, or swim itself to redemption on an endless sea electronic zeros.

How many onces of gold is there in a BATS terminal?

For that matter, where'd I put my abacus and magic beads???

I had high hopes for this hunnert years.

HFC - High Fucking Computers. Sweet, pass the pipe HAL.

Fri, 03/23/2012 - 12:43 | 2283998 karzai_luver
karzai_luver's picture

B.A.T.S

 

Bust ALL The SUckers

 

Now, stop with the Onion feeds,bitchez!

With laughter being the best medicine, I must salute our financial overlords for the best health care available.

 

 

Fri, 03/23/2012 - 12:53 | 2284047 rufusbird
rufusbird's picture

Another example of more "Good customer Service". A growing trend in American Business...

Fri, 03/23/2012 - 13:05 | 2284101 brooklynlou
brooklynlou's picture

Actually Panos from the Greece video is CEO of BATS. Its all part of the Greek 60 year plan to free the world from fascism.

"And to the rest of the world, your welcome, malakes ..."

Fri, 03/23/2012 - 13:34 | 2284224 Ljoot
Ljoot's picture

I just entered a buy @ .0388, but the screen bid is still .0299! :)

 

Fri, 03/23/2012 - 13:37 | 2284233 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Is this bearish or bullshit for BATS?

Fri, 03/23/2012 - 13:37 | 2284236 Ljoot
Ljoot's picture

I'd say it's battish.

 

Sat, 03/24/2012 - 09:19 | 2286367 Money 4 Nothing
Money 4 Nothing's picture

I concur.

Fri, 03/23/2012 - 13:54 | 2284301 Rathmullan
Rathmullan's picture

Something weird is going on. Either the machines are revolting or al-queda has hacked the exchange. Anyway, unbelievable that the market is up today? (Oh that's right - the dollar is weak (and oil is soaring) I got shorter today on a feeling that this going to be an interesting spring. And I think it will begin getting interesting very soon.

Fri, 03/23/2012 - 14:06 | 2284357 JLee2027
JLee2027's picture

This is hysterical.

 

http://online.wsj.com/article/SB10001424052702304636404577299560502440118.html

"BATS Global Markets said it wanted to try its IPO again in the afternoon, but has canceled the plan. " - Wall Street Journal

Fri, 03/23/2012 - 15:32 | 2284667 suckerfishzilla
suckerfishzilla's picture

It looks like a good deal below a dollar.  If it sounds too good to be true though well...you know. 

Fri, 03/23/2012 - 18:27 | 2285341 The Beam
The Beam's picture

I picked the wrong day to not be in the office. It would have been fun watching the festivites!

Sat, 03/24/2012 - 08:39 | 2286323 rsnoble
rsnoble's picture

I wonder if any muppets placed a market order before going to work? LOL.  It's not about investing, it's about fucking everyone over.

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