News Dow Jones fall: a computer error caused panic on the markets

[SiberianTiger]

http://www.computerworld.com/s/article/9176409/Sharp_stock_market_drop_likely_human_computer_error

Trader attempting to short-sell 16 million shares of S&P 500 stock entered a 'b' for billion instead of an 'm' for million, sources said

The Dow Jones Industrial Average plummeted almost 1,000 points in a half-hour today, the cause of which appears to be human error exacerbated by a market made more volatile by high-speed trades and automatic sale orders that are measured in milliseconds.

According to published reports and sources a trader attempting to short-sell 16 million shares of S&P 500 stock, possibly involving Proctor & Gamble profits, entered a "b" for billion instead of an "m" for million. That error sent high frequency traders scurrying, causing liquidity to vanish.

The Dow fell as low as 9,867 points from its previous day's close of 10,868 before rebounding to 10,464 points by the close of the market today.

Be careful when programming and using your code.

 

[Urwumpe]

The P&G trader theory has been ruled out already, the anomaly was caused by something else, more obscure it seems.

I suggest it was a disturbance in the force.

 

[Hielor]

Look at any company's stock value for yesterday, and you'll see a steep decline around 3pm. Amazing.

 

[Kyle]

Someone forgot their afternoon coffee apparently..

 

[RisingFury]

Shortselling is still legal? I thought they would have made it illegal, after the whole fuss about it a year and a half ago.

 

[ar81]

It is divine influence. This is the story of how the gods did it.
Traders use software that detect when trading goes off limits or when price is too different than previous one.
There were two groups: the humans and the gods that dictate how fate behaves.
There were some serious errors that meet the conditions to be reversed. At the moment of panic the gods buy a lot that will not be reversed.
So the godly sales that caused the panic will be reversed but not the purchases that caused gods to make money.

Be aware that this story may be offensive for those who believe in the all-mighty purple dinosaur Barney.:lol:

 

[Ark]

I need to learn how to short sell, it sounds like the only way to make real money in the market.

 

[ar81]

I need to learn how to short sell, it sounds like the only way to make real money in the market.

It is speculation...
They use the specularity feature of orbiter meshes...

 

[eveningsky339]

...And somewhere in the world, a budding programmer lost his job.

 

[Zachstar]

There was no chaos. Any large buy and sell orders during the timeframe were canceled and most investors are smart enough to know its absolutely impossible for such a drop to be realistic. If europe's economy implodes it would take months to years to do. Greeks are getting the help and increased ommph is starting to get things running again.

If someone went on a panic sell during that. They are suckers for losing their money like that.

 

[ar81]

...And somewhere in the world, a budding programmer lost his job.

ad was hired by those who made money...:lol:

 

[RisingFury]

I think the word "billion" should be changed to "bailout". That'd more accuratelly convey the current situation in the markets...

 

[Hielor]

If someone went on a panic sell during that. They are suckers for losing their money like that.

A lot of stocks have still not recovered to where they were before this event. Look at the 5-day history for any major US stock: a big dip on Thursday around 3pm, then a quick recovery to a point lower than where it started.