As business media pats itself on the back for the BABA IPO, proclaiming how it's the most important, and biggest IPO of all-time and on "the most efficient and transparent" exchange, perhaps it was just oversight that they forgot to mention BABA's 7-second halt "glitch" this afternoon as BABA trading exceeded 25% of all volume at some points. But that was minor compared to the utter clusterfuck that occurred as AAPL shares started to tumble and, as Nanex points out, 100s of individual stocks instantly flash-crashed and dashed by over 1% at 1550ET as the Russell rebalanced. These are your unrigged, transparent, efficient markets...
Via Nanex,
BABA Algo trading was massive...
During the first 20 minutes, $BABA [6] often exceeded 25% of all trading volume in NMS stocks pic.twitter.com/gnKVhI9psZ [7]
— Eric Scott Hunsader (@nanexllc) September 19, 2014 [8]
BABA's Glitch...
[9]
The BABA 7-second glitch is what happens all the time at much smaller intervals (< 1ms): the source of #HFT [10] profits
— Eric Scott Hunsader (@nanexllc) September 19, 2014 [11]
Then as AAPL starts to slip... (BTW, WTF after-hours?)
[12]
100s of individual stocks explode instantly in flash-crashed and dashes...as the Russell rebalance hit. There's always extra volume on quadruple witching, but this time the systems were overloaded more than usual, leading to 100's of sudden moves.
[13]
WOW! Tons of flash crashes/Dashes at 15:50:00 (all Nasdaq - from imbalances)
— Eric Scott Hunsader (@nanexllc) September 19, 2014 [14]
* * *
Do any of these charts look like the "efficient, transparent" markets we are told about every day?
