The ? They Aren’t Asking about “Flash Crash”

1. Was it purposeful?

2. Were specific orders entered that would “sweep the book” in PG, MMM and Accenture? Why those stocks?

3. Why 2:40 pm? Isn’t that a suspicious time in terms of margin calls from clearing houses and expiration of limit down rules @ NYSE?

4. What kind of requirements should there be to be an exchange of any kind – major or dark pool? 50 – do we really need 50 different marketplaces? Isn’t that asking for trouble (see #1).

The SEC isn’t known for its immunity to the perceptual biases known from behavioral finance. In fact, they are known for the opposite.

Congress isn’t known for its prescient thinking …

Who is going to ask this stuff?

….oops add one more #5) Some high frequency firms supposedly pulled their orders… maybe the cause was a LACK of high frequency or at least a sudden shock to the balance. Given that there were apparently no bids in the three aforementioned stocks… that makes MORE sense!

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