Tue, Aug 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

May 6 'flash crash': Exchanges were on different pages - Opalesque Roundtable Boston

Friday, June 11, 2010

From Komfie Manalo, Opalesque Asia:

The so-called May 6 "flash crash" which saw the Dow Jones drop 1000 points was not a product of market manipulation or monopoly, but rather was due to the fact that "not everybody was on the same page" on that day, so said participants of the latest Opalesque Roundtable in Boston.

Alec Petro, Managing Partner at Bay Hill Capital Management, a volatility-focused, multi-strategy hedge fund based in Massachusetts with $130m in AuM, said that the May 6 incident was an example of too much information and too much velocity overwhelming liquidity, coupled by a decision by "guys like us to just turn our machines off."

"People were used to a certain level of liquidity and we made a decision at a point on that Thursday that we cannot trade reasonably in this market and went into a 'wait' mode, that created a vacuum and a certain momentum along with that. Hopefully the exchanges will unify their circuit breakers, because the circuit breakers, when they kicked in, did a good job; it is just that not everybody was on the same page with them. I do believe that this sudden withdrawal of liquidity by a group of systematic traders did affect the market," Petro said.

This sentiment was seconded by Thomas Callahan, CEO of NYSE Li......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  2. Activist News - Celgene says patent-fighting hedge fund manager wants to short its shares[more]

    From Reuters.com: Celgene Corp, one of the world's largest biotechnology companies, has accused U.S. hedge fund manager Kyle Bass of attempting to profit from his attempts to wipe out several major drug patents through his Coalition for Affordable Drugs. The company asked the U.S. Patent and T

  3. Einhorn's Greenlight Capital hedge fund slumps 6.1 percent in July[more]

    From Reuters/Thefiscaltimes.com: Hedge fund mogul David Einhorn's Greenlight Capital slumped 6.1 percent in July and is now down 9 percent for the year after gold, one of the fund's top holdings, tumbled to five-year lows last week. Greenlight notified clients of its returns late on Friday, ac

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner