No volume, deranged computers, and a rate hike: Europe's mini flash crash refutes the market's "welcoming"
of liquidity withdrawal to Goldman's now traditional embarrassment.
...and IBEX futures
From Serenity Markets:
An extremely nervous market drops hard and I fear that this morning we saw another mini flash-crash. The low volume of Christmas, compounded by the closed London market, and negligible volume, is making program trading far more obvious. Here is the true essence of the market: machines everywhere. As can be seen on the chart above, the Dax futures minimum of 6915 was hit on almost no volume. For the machines it is very easy to create a genuine flash crash. It is very important to keep this in mind as a demonstration of how easily a machine can sweep a stop.
Goldman is partially right: the Chinese rate hike is welcome by at least one market participant, as Euronext and a few European HFTs just took out all the limit stops to the downside and made a killing on the round trip.