http://www.advancedtrading.com/blog/archives/2010/08/was_cyberwarefa.html By Ivy Schmerken Advanced Trading Aug 24, 2010 The clues to the causes of the mysterious May 6 flash crash are evidently buried in the trading data. Yesterday the New York Times reported that a small, obscure data analysis company, Nanex, located outside of Chicago, has discovered strange patterns in the stock trading data, which it calls crop circles. [See the NYT story: “Ominously, Flash Crass Still Baffles”. Ever since the market inexplicably plunged 600 points that day and recovered within minutes, Nanex, a company headed by CEO Eric Hundsader, a former developer of real-time trading systems, has been examining trading charts and publishing flash crash analysis. Nanex has reportedly attracted Wall Street’s interest in the charts by giving them intriguing names like Continental Crust, Broke Highway and Twilight,” the NY Times noted. The bizarre patterns are giving rise to a theory that high –speed traders overloaded the exchanges as part of a conspiracy to slow down the exchanges and outsmart other investors. One theory is that high-speed traders bombarded the exchanges with a fusillade of buy and sell orders that were never meant to be executed. They were simply trying to outwit each others’ computers and clog up the exchanges so that other investors couldn’t execute. [...] _______________________________________________________ Subscribe to InfoSec News - www.infosecnews.org http://www.infosecnews.org/mailman/listinfo/isnReceived on Tue Aug 24 2010 - 22:38:28 PDT
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