News & Press Releases
High Speed Trading Glitch Costs Investors Billions
May 07,2010
News Description:
Dow Jones Industrial Averages fell by almost 1,000 points, recovered and then ended with a loss of 347 by closing on 6 May 2010. This was apparently caused by trading glitch involving multiple transactions. There was also allegation of a trading error made by a trader in a Wall Street bank who mistyped an order to sell a large block of stock. High frequency trade currently accounts for 50-75% of trading volume. For a while, traders started distrusting what they were seeing because they did not know the actual value of the stocks.
For further details, see http://www.nytimes.com/2010/05/07/business/economy/07trade.html and http://www.reuters.com/article/idUSTRE6455ZG20100506 (last accessed 7 May 2010)
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