By Rebecca Hampson
The exchange-traded fund market is regarded by some regulators as having played a key role in a number of so-called “flash crashes” – sudden, inexplicable falls and recoveries in securities prices. But one of the biggest players, Flow Traders, believes the finger pointing is misplaced. The ETF market had its first flash crash on May 6, 2010, which was followed by a second, mini-flash crash, in March last year. Both saw a
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Investigations by the Securities and Exchange Commission cite ETFs as a significant cause of the crashes and it has put ETF marketmakers using controversial high-frequency trading, or HFT, techniques under the spotlight. HFT works by executing hundreds ...
securities and exchange commission, finance, financial economics, investment, funds, short, u.s. securities and exchange commission
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