Fri, May 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fake AP Tweet: Not much can be done about bogus bad news

Thursday, April 25, 2013

Benedicte Gravrand, Opalesque Geneva: - Tuesday's mini sell-off following a fake tweet has led to renewed questions as to whether high frequency selling is harmful to the financial markets and whether manipulation through social media can be stopped or regulated. Meanwhile, Twitter is working on its own security protocol.

On Tuesday at 1:07 p.m. EDT, a tweet on the Associated Press (AP)'s Twitter feed announced "Breaking: Two Explosions in the White House and Barack Obama is injured." This was, needless to say, re-tweeted dynamically. The Dow Jones industrial average plunged 145 points, and investors unloaded around $134bn worth of stocks.

But then, people realised it was fake news and the markets recovered quickly. The rebound started at 1:10 p.m., when word began to circulate that the AP tweet was a hoax and the White House was unharmed, said the Washington Post. A chart on how the market reacted can be seen here.

Computer programs According to the Seattle Times, most of the investors dumping stocks werenít human, they were computers.

"Before you could blink, it was over," Joe Saluzzi, co-founder of Themis Trading and an outspoken critic of high-speed computerized tra......................

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. Opalesque Exclusive: New TMT hedge fund adopts the long-term approach[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Adam Parker founded Center Lake Capital LLC in New York in November 2014. Before that, he was portfolio manager at Point State Capital (the successor fund to Dr

  2. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Icelandís failed banks face a tax that targets the lendersí estates as the government prepares to unveil its plan for exiting capital controls in t

  3. Investing - Nelson Peltzís Trian Fund Management reduces position in Legg Mason, Biotech investors up big amid bubble talk, Hedge funds increase exposure in healthcare[more]

    Nelson Peltzís Trian Fund Management reduces position in Legg Mason From Octafinance.com: Trian Fund Management has filled a SC 13D/A form regarding Legg Mason, Inc. Per Nelson Peltzís Trian Fund Managementís filing, the filler reported decreased stake in the company by -11.05% to 11,03

  4. All hedge fund strategies rebounded last week as market conditions normalize[more]

    Komfie Manalo, Opalesque Asia: After a difficult start this month, all hedge fund strategies ended last week in positive territory, as the Lyxor Hedge Fund Index gained 0.9% (-0.2% MTD, 3.3% YTD). According to Lyxor AMís latest Weekly Briefing, in t

  5. Billionaire hedge fund investor Odey says April 'bloody', has cut risk[more]

    From Reuters/Yahoo.com: Billionaire hedge fund manager Crispin Odey has cut risk and leverage following a stunning 19.3 percent loss in his 3.1 billion euros (2 billion pounds) Odey European Inc fund in April, a letter to investors seen by Reuters showed. Describing the month as "bloody", Odey

 

banner