by Bill McBride on 9/20/2010 09:40:00 PM
Monday, September 20, 2010
From Graham Bowley at the NY Times: Ex-Physicist Leads Inquiry into Flash Crash
[The] long-awaited report on the so-called flash crash, in partnership with the Commodity Futures Trading Commission, is due to be published in the next two weeks.Hopefully the explanation will be clear and understandable.
[The SEC's Gregg Berman says] the report will zero in on a specific sequence of events that preceded the crash. He says it will tell a clear story about what happened in the markets on that stomach-churning day, beyond simply pointing a finger at the perils of the kind of high-speed computer trading that dominates today’s markets.
“The report will clearly demonstrate how market conditions and events prior to the flash crash led to the extreme price moves,” he said.
“Many market participants told us, ‘We’re not quite sure what happened over all, but this is what my firm saw and the actions we took,’ ” Mr. Berman said. “It was like ‘C.S.I.’ We wanted to interview everyone around.”
Posted by Bill McBride on 9/20/2010 09:40:00 PM