Losses can come via short squeeze as wel, not sure that can fall into the Flash Crash theory though. Flash rally maybe?
NASDAQ is broken
- Thread starter Bowgett
- Start date
Losses can come via short squeeze as wel, not sure that can fall into the Flash Crash theory though. Flash rally maybe?
wow. guess i need to be more specific. yea, its not a crash. but theres gunna be busted trades and big losses for shure
Interesting 
It's a good thing tho. Busting trades is retarded
It's a good thing tho. Busting trades is retardedthere was a period,when nasdaq isn't working(see my typical whining in TWS bug thread),but NYSE and ARCA(trading same nasdaq stocks) was up. it was helluva opportunity to f** someone else up.
then -there is another shit storm after they re open. i was actually sitting on the loss of about -700$ or so on bunch of stocks and i was out right on the middle of this mess at re open with total loss around $50 after commish for about 100 executions. still holding few of them(ones that i can't close no matter what). so overall-it was a good day for me(assuming that there is will be no busts tomorrow)
but, i wouldn't touch this market till at leas next tuesday. everything is f** up big time on nasdaq..
Preliminary press release finds... NYSE Arca to blame, not HFT.
I think that the highlighted portion describes one type of event storm and there are other kinds as well. I recall identifying event storms as one issue in the past talking about why the HFT speed race was so dangerous.
Ethernet networks can also be susceptible to collisions that can paralyze high throughput applications, especially if remote database or remote applications need to process the messages in anyway. The incorrect symbol requests sounds a lot like one particular DNS Denial-of-service attack that causes them to thrash on non-acknowledged bad requests. There is no mention of a throttle mechanism, but perhaps that was designed in.
It's not just raw burst throughput but sustained throughput as well that is necessary since requests probably have some computer overhead associated with them. Hopefully the architects designed for a highly likely computer issue from outside. Perhaps this explains why my trading system orders (from a major bank) always stopped working properly when the sharp falls happened - like in the flash crash.
IMO a fair NBBO can't truly exist unless a minimum time (15 ns????) is set for trade orders. If they don't do this, it is just a matter of time before an intentional or unintentional external computer causes problems.
I haven't worked in these fields for years. I am sure they have some competent people working on the problem. Traders should just be very cautious until these problems are resolved for good.
Ethernet networks can also be susceptible to collisions that can paralyze high throughput applications, especially if remote database or remote applications need to process the messages in anyway. The incorrect symbol requests sounds a lot like one particular DNS Denial-of-service attack that causes them to thrash on non-acknowledged bad requests. There is no mention of a throttle mechanism, but perhaps that was designed in.
It's not just raw burst throughput but sustained throughput as well that is necessary since requests probably have some computer overhead associated with them. Hopefully the architects designed for a highly likely computer issue from outside. Perhaps this explains why my trading system orders (from a major bank) always stopped working properly when the sharp falls happened - like in the flash crash.
IMO a fair NBBO can't truly exist unless a minimum time (15 ns????) is set for trade orders. If they don't do this, it is just a matter of time before an intentional or unintentional external computer causes problems.
I haven't worked in these fields for years. I am sure they have some competent people working on the problem. Traders should just be very cautious until these problems are resolved for good.
they shouldn't make this type of info public. it's like they inform public, here's weakness in my system. go ahead exploit it for your own gain.