Nanex ~ 09-Jul-2013 ~ Creating $13 Billion with 101 Shares
The class A stock of Petroleo Brasileiro SA Petrobras (symbol: PBR.A, market cap $88
Billion) opened at $15.61 on a 101 share trade from Nasdaq. That's a gain of $2.23,
which didn't last long. About 20 seconds later, the NYSE opened at $13.58. which was
$2.03 lower. What happened? Wide, sloppy quotes happened. The quote spread on this $88
Billion stock was about $20 Billion. Which means the difference between a market order
to buy 100 shares and a market order to sell 100 shares was about $20 billion in market
capitalization. This is why Knights rouge testing algo sent many large capitalization stocks either
up over 5%, or down more than 5% - it just depended whether the test algo randomly
chose to first buy or sell in that stock.
1. PBR.A Trades and NBBO.
2. PBR.A Bids and Asks color coded by exchange and NBBO.