The truth about yesterday’s market collapse:

anyone else notice that the Emini S&P500 contract (ES) did NOT trade in the 16 million range or higher,

from what I was told verbally (didn't bother to confirm this) it remained in the 5,000,000 range or there abouts

weren't they saying some fat finger trader mistake entering 16 Billion instead of 16 million contracts?

what a hoax and misdirection there also.....
 
Quote from Financial Saint:

Top 100 hedge funds usually hire PhDs in mathematics, physics and computer science from MIT. Well all of those MIT students are taught from the same professors, so for that reason pretty much all of them have the same knowledge and the result of that is that they build the same type of algorithms and systems for trading in the market. So the result of that is that they all pretty much go the same way and the result of that is yesterday’s 1,000 points drop. The geniuses have failed again and then walked away unharmed with no consequences. I am sure they have lost money too, but it was not their money, it was their investor’s money. This is just my humble opinion.
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If the full extent of your knowledge of high-frequency trading is: a lot of shops hire computer science grads from name-brand schools... then you indeed have a lot to be humble about.
 
Quote from limitdown:

anyone else notice that the Emini S&P500 contract (ES) did NOT trade in the 16 million range or higher,

from what I was told verbally (didn't bother to confirm this) it remained in the 5,000,000 range or there abouts

weren't they saying some fat finger trader mistake entering 16 Billion instead of 16 million contracts?

what a hoax and misdirection there also.....
More...

I don't think anyone is claiming a fat finger in the Emini SP, just in a couple or a few different stocks. Again, not that they caused the meltdown, but they didn't help matters either.
 
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