The New York Stock Exchange later said the errors occurred after market orders were entered that were intended to be limit orders. “The sharp drops in these ETFs argue for extending the individual circuit breakers to more exchange-traded securities, as the SEC reportedly is considering,” said Robert Colby, a partner at Davis Polk and former deputy director in the SEC’s trading and markets division. The ETFs that plunged on Thursday were not covered by these breakers. “I would be surprised if this (a flash crash) doesn’t happen again in the future, unless they really address these issues,” said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.Īfter the crash, exchanges adopted so-called circuit breakers that halt trading in hundreds of stocks and ETFs when their price moves 10 percent or more during a rolling five-minute period. The latest abrupt share drop comes on the heels of several sudden and unexplained plunges that remind investors of the May 2010 flash crash, which wiped out nearly $1 trillion in market capitalization in a few minutes and have kept retail investors wary of trading stocks. Nasdaq OMX Group Inc said it canceled trades in 10 new ETFs sponsored by Scottrade affiliate FocusShares, some of which briefly plummeted as much as 98 percent. stock market opened on Thursday, suggesting recent measures put in place to protect against extreme market moves may not be enough. NEW YORK (Reuters) - Ten new exchange-traded funds suffered their own mini “flash crashes” shortly after the U.S.
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