| RESULTS FOR DAY | |
|---|---|
| CL Contracts: | 1 |
| Net $P/L: | 206 |
| Wins: | 1 |
| Losses: | 0 |
| Win%: | 100 |
| Avg$Win: | 206 |
| Avg$Loss: | 0 |
In other news, if you live in a cave or haven't heard this in past 24 hours...
After 5 years, it's about time!
UK trader charged for manipulation contributing to 2010 flash crash
“Against a backdrop of negative market sentiment and thinning liquidity, at 2:32 p.m., a large Fundamental Seller (a mutual fund complex) initiated a program to sell a total of 75,000 E- Mini contracts (valued at approximately $4.1 billion) as a hedge to an existing equity position. This large Fundamental Seller chose to execute this sell program via an automated execution algorithm (“Sell Algorithm”) that was programmed to feed orders into the June 2010 E-Mini market to target an execution rate set to 9% of the trading volume calculated over the previous minute, but without regard to price or time. The execution of this sell program resulted in the largest net change in daily position of any trader in the E-Mini since the beginning of the year.”
And this is very interesting to see behind the veil:
Who Trades Emini Futures? Some Data to Ponder
Posts
Gee I've missed Sandy's rants.
ReplyDeleteThat was a good one.
Solfest LOL - Sandy can get carried away sometimes but is always a good read and spot on in this and most cases. I just shook my head with this news that it actually took 5 years? I could see any investigation taking a few weeks but what excuse is there for 5 freakin' years? Was this the 80s when all the orders were done on paper? I do feel bad for this UK trader. The large firms do the same thing he did but don't get questioned.
ReplyDeleteYou're right that "spoofing" is not the same thing as executed trades, but if done correctly it can trigger algo's to fire off and that can bring in some serious buy/sell volume which can move a market.
ReplyDeleteThat's not to say this guy is guilty, what do I know I'm a home based trader, I'm in no position to know the actual details of the case. I do know however that it is possible bait the algo's.