"Flash Crash" Follow-up
Posted by Ken Makovsky on June 14, 2010
My guest blogger today is Travis Ferber, Senior Account Executive, at Makovsky + Company.
On Thursday, June 10, the results of the May 6th "flash crash" hit the nation's securities exchanges once again, this time in the form of circuit-breaker rules.
What do these rules do? Well, in the event of a security's rapid and extreme price change (10% or more in five minutes), all trading venues (exchanges, markets, ATSs) must halt the trading of that security. In theory, everyone gets a chance to figure out why the price of a security is changing. ...
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