Nanex Research

Nanex ~ 22-Aug-2013 ~ Amazon's 2.5 Minute Outage at 11:01

Another instance of quotes not updating (see Apple), but trading continuing as if nothing was wrong. This is because exchanges are providing data to High Frequency Traders via direct feeds ahead of the SIP or consolidated feed. This is a clear violation of Reg  NMS (what the SEC fined the NYSE $5 Million for). In fact, this behavior renders Reg NMS moot.

1. AMZN - showing trades color coded by exchange and NBBO.
Trades should always appear within the NBBO which is draw in a light gray shade (the red indicates when the NBBO is crossed - when the bid price is higher than the ask price).

2. AMZN - Showing best bids and offers colored by exchange.

3. AMZN - Showing all bids and offers colored by exchange.

4. AMZN. Zoom of Chart 1.

5. AMZN. Zoom of Chart 2.

6. AMZN. Zoom of Chart 3.

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