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Seems like maybe they couldn't hold on to the stock for long enough to unload the enormous volume they were dealing with. It sounded like at one point they were
by jonah 14y ago
Seems like maybe they couldn't hold on to the stock for long enough to unload the enormous volume they were dealing with. It sounded like at one point they were doing AS MUCH VOLUME AS EVERYONE ELSE on the exchange combined.
http://news.ycombinator.com/item?id=4337750 http://news.ycombinator.com/item?id=4337750
- Devilboy 14y agoSince there's 2 parties to every trade doesn't that make 50% the limit?
- jonah 14y agoTrading volume is number of shares traded, not number of trades. Re-reading, it was actually ~600% greater volume. "The difference reached a peak at 9:58 a.m., when the volume was six times greater." That's pretty noticable!
- sp332 14y agoNope, sometimes they bought stock they sold themselves!
- Devilboy 14y agoIf you sell stock to yourself... why even bother to go through the exchange? Why would the exchange even allow such trades?
- sp332 14y agoKnight has different programs running. It was handling >10% of all NYSE, so it must have been running a lot of servers. When the berserk algorithm wanted to buy or sell a stock where Knight was the only "market-maker", another Knight server would usually intercept the order after it had been posted on the exchange. Here's one way it might have happened: http://www.nanex.net/aqck2/3525.html http://www.nanex.net/aqck2/3525.html