One week after a mysterious outage at the NASDAQ, worrying rumours of high frequency trading gone beserk are emerging, with one chart (tinyurl.com/op8bhro) showing the minutes leading up to the blackout getting a lot of attention.
The chart shows how a single algorithm captured an hour of trade in a $13bn auto stock, before compressing and blasting those exact same orders back to the exchange in just three seconds.
Spooky.
(excerpt courtesy of Smart Investor, free digital copy, 31 Aug 2013).
