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.”

Markets Would Be A Lot Safer If We Wound Back The Clock About 25 Years

But times have changed.

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

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

Trader: ‘Algos And Dark Pools’ Are Making It Impossible To Know ‘What’s Going On’

“Poor liquidity conditions and massive block trading. Never has it been more obvious that relying solely on electronic trading has fundamentally altered how business is cleared.”

SocGen: Algos Gone Wild, HFTs Causing “Extreme Volatility” In Metals Market

“The jury is out as to whether these players are good or bad for the market.”