How to stop a car without brakesFurther systemic risk. Jim in San Marcos comments on changes at the New York Stock Exchange, which has completed its conversion to electronic trading and has now removed some safety checks that were designed to reduce volatility in extreme conditions.
He says that a change in sentiment (perhaps initially caused by an error) could now lead to a much more rapid drop on the markets, since pension funds and investment companies are also using programmed trading.
No comments:
Post a Comment
Unfortunately, because of a plague of spam comments, you need to be a "registered user", otherwise your observations will be buried in a torrent of multilingual nonsense. Please do comment!
Say what you please, so long as it's phrased politely and is not libellous or legally proscribed. Fact, reason and wit are keenly welcomed.