Dr. Karagozoglu’s opinion & analysis article on high frequency trading appears in TABB Group’s Forum.
‘Flash’ Enters the Financial Vocabulary
The term “flash” first appeared within the context of a new process of quote or order displays that are measured in milliseconds – that is, “flash quotes.” Utilizing this new process to trade has been referred to as “flash trading.” … … The unprecedented events of May 6, 2010, are referred to as the “Flash Crash.” However, given that the S&P 500 Index E-mini futures contract price declined by more than 5% between 2:32:00pm and 2:45:28pm AND rebounded by around 5% between 2:45:33pm and 3:00:00pm, in all fairness this event should be referred to as the “Flash Crash & Recovery” or the “Flash Bounce.”
By Jessica Meek | 22 May 2014 | Risk.net Operational Risk & Regulation
Technology getting out of control is the biggest concern with high-frequency trading (HFT), the US Financial Industry Regulatory Authority’s (Finra) chief information officer told delegates at the North American Financial Information Summit in New York on May 21, 2014.
By Cheyenne Hopkins, Bloomberg, Jun 9, 2014 6:02 PM ET
“…computerized and algorithmic traders who account for about half of U.S. stock trades. Traders like those highlighted by Michael Lewis in his book “Flash Boys” have been linked by critics to a May 2010 stock-market disruption…”
Bloomberg reporter Cheyenne Hopkins uses an unbiased and appropriate description, i.e. “a May 2010 stock-market disruption” in referring to the events of May 6, 2010, that became known as the “Flash Crash”. I sincerely thank Cheyenne Hopkins!
An unprecedented rapid decrease AND increase, by more than 5% in each direction, within 20 minute time period between 2:32 PM and 2:52 PM ET was experienced in the U.S. stock market, i.e. in E-mini S&P 500 stock index futures prices.