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The ENV Event of October 19, 2011

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On October 19, 2011, the stock ENV went $9.48 to $0.02 in 1 second and then quickly recovered in pre-market trading. This is something the public has been told can no longer happen with the improvements made since the Flash Crash of May 6, 2010. Apparently, it can happen and as shown below, it was clearly an algorithm that took the price to almost zero in just one split second.

While the 253 errant trades were later canceled, it is painfully obvious that lurking algos are still ready, willing and able to bring the price of a stock to zero if given the chance. We need real improvements, not just banter.


Prices for pre-event, event, post event:

Price and sizes, zoomed to show the obvious algos running during the event.

Price only, zoomed to show the 1 second time frame it took to drop the price to $0.02:

Of course, most of these trades were later canceled.

Price only, Trades only of the entire event. Trades that were canceled are colored in orange. There were 253 canceled trades in total:

And with the canceled trades removed we can see it was just another algo in the mist. Pretend it Didn't Happen:

For a complete lists of all canceled trades, Click Here.


Publication Date: 10/19/2011

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