By John Kemp – Monday’s (Sep 17) sudden dive in oil prices appears more and more unusual with hindsight, and poses questions for traders, regulators and exchanges alike about just who or what caused such a major turnaround in the market.
Explanations range from a “fat finger” trading error or a high-frequency computer trading program run amok to a concentration of stop-loss orders being triggered or a single large trade by a hedge fund selling up to 10 million barrels of crude in a single clip, though no one appears to know for certain.
- Flash crash or a turning point for oil prices? (business.financialpost.com)
- What caused the oil flash crash? (business.financialpost.com)
- CNN Money: U.S. Treasuries could become the next flash-crash victim (investmentwatchblog.com)
- Oil market misbehaves (again) (business.financialpost.com)
- One big order, thousands of small ones, seen behind oil tumble (uk.reuters.com)
- Big Data, Fast Markets (forbes.com)
- Markets Gone Wild? What High Frequency Trading Really Means for Retail Investors (fool.com)