Well worth perusing
From: [email protected] [mailto:[email protected]] On Behalf Of Harold R. Lanier Sent: Friday, June 18, 2010 2:38 PM To: TAOTN Subject: [ta-list] May 6th The information on the attached website should give you some insight into what happen/caused the May 6th "Flash Crash." http://www.nanex.net/20100506/FlashCrashAnalysis_Intro.html The recommendations: 1. Quote and trade data must be timestamped at the time it is generated. This will ensure delays can be detected by everyone. 2. Quote-stuffing should be treated as fraud, and banned. 3. Add a simple 50 millisecond quote expiration rule: a quote must remain active until it is executed upon, or 50ms elapses. If the quote is part of the NBBO, it may be improved (higher bid or lower offer price) at any time without waiting for the expiraton period. would significantly improve the market and should be pushed. If you have the ear of a congressman, journalist or SEC official that might be able to push these issues, I would encourage you to pass this information on to them. Likewise it would be beneficial to post to other trade groups that you belong to. Evidence shows that this is only the tip of the iceburg, more information to come as research is completed. Harold R. Lanier 251-650-4436 Fairhope [email protected]
