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Title: From $44 To $4 In Less A Second: Today's Flash Crash Brought To You Courtesy Of The Nasdaq And A Clueless And Corrupt SEC (Obama's SEC looks the other way while the looting progresses at full-speed)
Source:
Zero Hedge
URL Source: http://www.zerohedge.com/article/44 ... dq-and-broken-circuit-breakers
Published: Sep 27, 2010
Author: Tyler Durden
Post Date: 2010-09-27 15:39:45 by Nebuchadnezzar
Keywords: None
Views: 2336
Comments: 9
From $44 To $4 In Less A Second: Today's Flash Crash Brought To You Courtesy Of The Nasdaq And A Clueless And Corrupt SEC Submitted by Tyler Durden on 09/27/2010 12:34 -0500 Circuit Breakers NASDAQ Today's reverse engineered HFT algo strategy: if price drops more than x% in a millisecond, then enter order y% below bid, else pull all bids, especially when price is 90% below most recent NBBO posted a mere second earlier. Which is precisely what happened to Progress Energy (PGN), which dropped from $44 to $4 in less than second, but not in quantized fashion (i.e. fat finger), but in a gradual, than exponentially accelerating manner, as an algo took out all the bids. We can't wait for this week's 21st sequential outflow from equity funds: luckily investors are now all too aware that holding a stock, any stock, is dangerous to one's sanity, not to mention stop loss orders. And where the hell was the circuit breaker on this one? The market is and continues to be a miserable joke, especially courtesy of Nasdaq and the 160 trades in PGN that occurred at ridiculous, HFT-exaggerated prices. And of course, all those lucky fools who bought the stock at a 90% discount are about to be DKed, because it is Nasdaq's prerogative to protect its HFT paying clients, and not investors. And here is the stepwise drop from $44 to $4, with no circuit breakers being activated. Total and absolute farce. In China someone would have taken a bullet for this. Only in America do the regumalators demand greater budgets, and year end bonuses, to continue their worthless shitjobs. 
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#1. To: All (#0)
****LIAR ALERT*** Progress Energy Trades Voided Following U.S. Volatility Halt www.bloomberg.com By Nick Baker Sept. 27 (Bloomberg) -- Fifty-three trades in Progress Energy Inc. occurring prior to the stock being halted under market-wide circuit breakers were canceled on the Nasdaq Stock Market, according to data compiled by Bloomberg. All of the transactions occurred at 12:57:42 p.m. New York time before trading was suspended when the shares slid to $4.57 apiece, a 90 percent decline from the previous close. Progress Energy rebounded to $44.48 as of 2:33 p.m. in New York. Link to Company News:{PGN US CN }
And some wondered why I got out a month ago...
Obama's first all-by-his-lonesome budget, btw, calls for a $1.17 trillion deficit.
and they still haven't figured out what caused the first flash-crash.
http://www.bloomberg.com/news/2010-09-27/progress-energy-stock-halted-by-u-s-volatility-curb- trades-later-voided.html
Bad order entered by a clerk at Citibank is what I heard...kid lost his job too...
What about the circuit breakers designed to stop this? Right, sure. Just like the crash in May that was caused by the fat-finger. Let me get this straight, I put up a picture on Facebook I have to confirm I own the picture, but some "kid" can make some billion dollar mistake?? Right, sure.
Clinton and Cuomo are the true bandits who lit the fuse to this economic crisis we're now in. All in the name of getting more minorities in houses: http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=12554
bullshit. you don't believe that. The key would be the Low Trade allowed on the Nasdaq reset. They're self Cannibalizing now. Started with <$1 stocks allowed. And less than penny trades. Soon, there will only be the HFT/Frontrunner and the US Treasury on the other side. Then this: From Comments on Zerohedge Article: by Miramanee on Mon, 09/27/2010 - 14:54 #608019 This is the logical extension of a system that must "grow" lest all he'll breaks loose. Growth becomes a charade, a farce, a crime, a fraud...and the PTB pull out every stop in the propaganda wars to keep growth alive!! That is why, eventually, we will see the outbreak of real, guns and bombs war vis this stuff. better to destroy another persons country than allow your own to be eaten alive by civil strife. We are a cosmic joke, we humans.
Once is a 'bug'. Repeatedly is a 'feature'.
But Summers, Greenspan and Rubin get the Platinum Parachutes. There is a BIG club, and you ain't in it. http://www.youtube.com/watch?v=hYIC0eZYEtI&feature=related George Carlin -"Who Really Controls America" http://original.antiwar.com/huber/2010/09/27/all-the-kings-bull-feather-merchants/ “You have to recognize also that I don’t think you win this war. I think you keep fighting. … This is the kind of fight we’re in for the rest of our lives and probably our kids’ lives.” Great Caesar’s Ghost, Bob! The morning after you heard that little tidbit from King David, this should have been screaming at us in Fire Alarm font from the front page of your once-great newspaper: “Top General Says We’ll Fight for Decades, Still Won’t Win.”
#2. To: Nebuchadnezzar (#0)
#3. To: war (#1)
And the Conservative plan to create jobs is......?????
#4. To: Nebuchadnezzar, war (#0)
The plunge was caused by an “inaccurate limit price entered by a trading firm,” according to a statement from Nasdaq Stock Market. Progress Energy exceeded $44.50 at 12:57:52 p.m. before more than 100 transactions during the same second drove it to $4.57, data compiled by Bloomberg show. More than 50 trades were canceled on Nasdaq, Bloomberg data show. The stock changed hands for $43.90 following the pause.
And the Conservative plan to create jobs is......?????
#5. To: go65 (#3)
(Edited)
#6. To: war (#5)
Bad order entered by a clerk at Citibank is what I heard...kid lost his job too...
#7. To: war (#5)
#8. To: Nebuchadnezzar (#6)
Let me get this straight, I put up a picture on Facebook I have to confirm I own the picture, but some "kid" can make some billion dollar mistake??
#9. To: war (#5)
Bad order entered by a clerk at Citibank is what I heard...kid lost his job too...
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