Algos erase $1B in minutes !!

[radha]

Link :

A Stock-Killer Fueled by Algorithm After Algorithm

 

[Pulco]

United Airlines doomed !!

But now what will happen for the stock of the company ?

 

[charlesdwright]

It's easy to hate google.

and back to my original response, "this is what happens when you remove human judgment from market-making."

From the Wall Street Journal:

As Tribune Co. and Google Inc. pointed fingers at each other over the glitch that cratered UAL Corp.'s stock Monday, blame spread to the computers that robotically troll the Web for news stories and execute stock trades automatically

 

[doug reich]

This is what happens when you remove human judgment from market-making.

Don't you mean trading, not market making?

 

[charlesdwright]

Don't you mean trading, not market making?

I meant market-making, but that's a good question; insofar as the article only talks about "trades," that's what I should have said.

The reference to market-making came about from a similar experience in EMLX in the summer of 2000, but the argument was about replacing the market-maker and specialist system with electronic order-matching. Tangential, I concede, and making the connection would take more than I want to post about it at the moment...

 

[doug reich]

The reference to market-making came about from a similar experience in EMLX in the summer of 2000, but the argument was about replacing the market-maker and specialist system with electronic order-matching. Tangential, I concede, and making the connection would take more than I want to post about it at the moment...

You have raised more questions than you have answered... I hope to hear more about this at some point.

 

[charlesdwright]

You have raised more questions than you have answered... I hope to hear more about this at some point.

Yeah, I suppose my comment begs an explanation, but I was getting busy and it is a subject that is more suitable for dialogue.

I did think of one thing I wanted to add, however: I didn't read the story closely enough to see if trading had been halted in the stock on the appearance of the rogue headline, but it would have been in a specialist market.

 

[Whetstone]

market psychology

google is a statistics machine and if you know the numbers you can control it.

this outcome was not unexpected. it show the extreme vulnerability of "the machine" !!!

google is not a "information" search engine. it is a "advertising" search engine.

and advertiser will manipulate it any way they can.