| It was the U.S. equity market’s first test under the volatility limits implemented after the 2010 “flash crash.” The test didn’t go well. These limits had some positive curbing force. But combined with poor price transparency at the open, the limits impaired the market’s ability to self-correct.
This pricing fog in U.S. equities had a disproportionate impact on U.S. ETFs tracking U.S. equities. Unable to make proper markets across U.S. equities, U.S. market makers struggled for the first hour to make markets in U.S. equity ETFs, too. There is no indication of a flaw specific to ETFs. ..............................................Full Article: Source
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