Have Exchanges Reached the Limits of Automated Trading?

Filed under: Indices, DJIA

It may be months -- if not years -- before investors, experienced and otherwise, definitively learn what caused last week's market plunge -- a nearly 1,000-point dive intra-day that, even in the financial crisis era's volatile trading, amazed even veteran trading floor specialists.



And that latter actor, or lack thereof, may prove to be the pivotal clue. While one doesn't want to indict technology before the evidence has been assembled and reviewed, the initial analysis suggests that some form of computer-to-computer, negative-spiral trading at least contributed to last Thursday's plunge in the Dow.

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Have Exchanges Reached the Limits of Automated Trading? originally appeared on BloggingStocks on Mon, 10 May 2010 17:40:00 EST. Please see our terms for use of feeds.

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