SEC and CFTC reviewing May 6 ‘unusual trading activity’

invisibleSHIELD case for iPadThe Securities and Exchange Commission and the Commodity Futures Trading Commission have released the following statement:

“The SEC and CFTC are working closely with the other financial regulators, as well as the exchanges, to review the unusual trading activity that took place briefly this afternoon. We are also working with the exchanges to take appropriate steps to protect investors pursuant to market rules.

“We will make public the findings of our review along with recommendations for appropriate action.”

Source: SEC, CFTC

17 Comments

  1. I think some trader accidentally added an extra zero to a sell order.

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  2. We could look at the Chinese and Arab oil states that have huge investments in the US Financial markets. Or we could look at Goldman Sachs, which owns the Domestic financial market. Or we could look at the 80-year old regulatory system that has been gutted by the financial industry’s lobbyists in the past decade.

    Doesn’t matter what it is, there is most definitely something wrong for something like what we saw yesterday.

  3. Obviously, G. Sachs and others made a killing yesterday.

    It was the ultimate crooked move by the “day traders”

    All the investors whose stop loss sells went through, then, for the day traders it was like shooting fish in a barrel to pick up stocks cheaper at that point.

    I watched it and I have never seen the market move so fast.

    What a setup. Somebody should be going to jail for this one. The responsible person will probably end up being employed by the largest employer in D.C.

  4. A couple extra zeros!
    It would be quite difficult for any computer attack to cause that kind of damage. Not that computers are perfect or a “force for good”, just that this isn’t the sort of thing they are likely to start. Once the initial mistake was made, though … thud !
    ron, despite what you (and my wife, and my mother) think, the Stock Market isn’t just Las Vegas North-East. There’s generally real value in most of the stocks available. The price for that value is negotiable, which is where the profit and loss … the “gambling” … come in.

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