(FrontPageMag) On May 6th, 2010, in the space of one-half hour, the Dow Jones Industrial Average (DJIA) dropped almost 1000 points. Two DJIA component stocks, Procter & Gamble and 3M, lost over 30% of their value in 15 minutes, while shares of Accenture went from $40 to a penny before recovering. What happened? Several theories were promulgated, from the “fat finger” trader error to “multiple erroneous trades.” The common denominator? Advanced technology: computerized, high-frequency trading (HFT) that allows for the buying and selling of millions of shares in a matter of milliseconds. Completely automated trades made by super-computers, absent human interaction.
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