Tuesday, July 26, 2011

Trader Wrong Type, the Dow Jones Free Fall

Allegedly induced traders who mistype a figure of U.S. $ 16 million to U.S. $ 16 billion. The perpetrators of the leading stock exchange, Wall Street, in New York, United States (U.S.) a scene after the stock price index, Dow Jones "freefall" almost amounting to 1,000 points. Alleged that the index drop was not just because of investor concerns over debt crisis in Greece, but due to broker a typo there.
Fortunately, the Dow could rise again. At the end of the transaction on Thursday afternoon New York time, the Dow was down only 347.80 points (3.2%) to 10,520. That, too, including a substantial reduction for groups such blue-chip stock prices.
The broader Standard & Poor's 500 fell 37.75 points (3.2%) to 1128.15. Similarly, the Nasdaq composite index, fell 82.65 points (3.4%) to 2319.64.
But managers and traders on Wall Street was stunned to see the Dow down nearly 1,000 points (approximately one-tenth of the total serial index) in just less than half an hour. It was the Dow's biggest decline experienced during the transaction.
Like the last few days, the indices on Wall Street Thursday in the transaction is expected to continue to decline following the investors are still worried over the potential transmission of the Greek debt crisis that could adversely affect the European economy and, ultimately, overseas.
However, in the afternoon trading session, there was an unusual decline in the Dow. Stock group of leading industrial players in the U.S. that could be seen slumped 998.50 points, before finally slowly-slowly climbed back in the afternoon session. The last time the Dow was in free fall at 15 Oktoober 2008. In times of financial crisis summit at that time, the Dow jomplang 780.87 points.
Market participants also had pale looking at the data. They crowded around television screens, there are events to find out what can make a tremendous drop in the Dow. "I fell off the chair. Looks like we're out of control," said Jack Ablin, broker of Harris Private Bank in Chicago.
Alleged sharp decline is not solely due to the Greek crisis, but an error in the stock sale transaction through a computer system. Bourse watchdog is investigating the news that there is a broker who typed the wrong computer. Traders were intended to sell its stake for U.S. $ 16 million, but that he typed was U.S. $ 16 billion.
Errors that enough stock selloff sparked massive. An oversight that seems to be rectified immediately. Manager of the New York Stock Exchange (Wall Street) stated there was no interference with the main computer system, but does not explain whether there are brokers who make typos.
Securities and Capital Markets Commission (SEC) states are investigating what actually happens behind the drop in the Dow. The regulatory body that "is working with the exchanges to perform the appropriate steps to protect investors," the SEC said.
"I think the machine [computer] could take over the situation. Not a lot of human interaction in the system," said Charlie Smith of Fort Pitt Capital Group. "We know that trade with the automated system can go around and I think that's what happened today," continued Smith.
Many professional investors and traders on Wall Street using special computer programs for buying and selling shares of big parties. The program uses mathematical models designed to showcase the best stock price for a trader.
However, often the movement of a number of computer programs it is very fast, depending on the intensity of the transaction. (Associated Press) (umi)

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