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I'm disappointed that the exchanges have decided to nullify the trades conducted during this period. If hedge funds and quants are going to put semi-autonomous

I'm disappointed that the exchanges have decided to nullify the trades conducted during this period. If hedge funds and quants are going to put semi-autonomous trading programs into the market, they need to have accountability for their actions. Eliminating the consequences for this kind of out-of-control trading creates moral hazard, in the same way as bailing out housing speculators who now can't pay their mortgage. If we declare a re-do every time the computer trading systems create an automated melt-down, then there's no real incentive to put buffers in place to prevent recurrence.

yummyfajitas 17y ago
People engaging in program trading generally want the exchange not to nullify trades. Trade nullification is unpredictable, and program traders want the markets to obey a set of predictable rules. The main beneficiaries of the broken trades are retail investors who placed stop loss orders. Many high frequency firms are actually hurt by this, namely the ones who bought at the bottom and sold near the top. Their buys were broken, but their sells were not.