Of Liquidity, Fragility, HFTs And ETFs: One Bank Takes You On A ‘Flash Crash Course’

Down the rabbit hole…


Welcome To ‘The Age Of Fragility’

Enjoy your stay.

Goldman Asks: ‘Will The Machines Amplify the Next Downturn?’

Expect this to get plenty of attention.

“HFTs know the price of everything and the value of nothing.”

Goldman Delivers Ominous Message: ‘Markets Themselves’ May Pose The Greatest Risk

“But we see several reasons to worry that ‘markets themselves’ are becoming a bigger source of market risk than fundamentals.”

Goldman’s Equity Algo Army Goes Offline After ‘Mistake’ Triggers Trading Limits

Notably, Goldman says this has nothing to do with today being the first trading day of MiFID II.

Epsilon Theory’s Latest: The Three-Body Problem

“There is a non-trivial chance that structural changes in our social worlds of politics and markets have made it impossible to identify predictive/ derivative patterns.” 

‘Shall I Go Thermonuclear?’ The Week That Was And A Market Vignette

“The room fell silent, the enormity of this unexpected crisis sinking in.”