The Latest Algo Gone Wild: British Pound Gets Rocked After Improper Sell Order

[falcontrader]

have to rein in these guys,out of control, TURN OFF THE MACHINES



http://www.businessinsider.com/the-...pound-gets-rocked-after-improper-order-2010-7

 

[falcontrader]

Rumour this morning's GBP/USD spike was do to an algorithmic model gone wild -- trying to sell $3bn instead of $3m. Whoops.
about 4 hours ago via web

 

[BondTrader50]

No error checking in that model huh?

 

[OTCkrak]

if you trade fx long enough.. those phantom spikes happen "all the time"..

 

[TraDaToR]

Algos putting 3 extra zeros in an order ??? Sorry, but that's the signature of a manual error.

"Or something like that".

 

[falcontrader]

there are no humans trading any more, all robots in FX

 

[S2007S]

The entire market is running on algorithmic trading.

:eek:

 

[ASusilovic]

Rumor is it was a Dutch bank...let me think, which large Dutch bank is heavily involved in Forex ? Scratch, scratch...:eek:

 

[TraDaToR]

Algos gone wild can have cascading effects on stop orders, triggering other algos to send orders or can throw 1000s of orders when there is a problem in their logic/ a scenario that was forgotten initially in the programming , but they don't put extra zeros in numbers.

The journalist doesn't have a single clue what caused it, but "it must be algo trading, they continually talk about it on news"...LOL

 

[Martinghoul]

The name of the bank in question starts with an 'R', I'm told... Apparently, they pulled the plug on the machine when it got filled in arnd 400 mil.