Fat Finger Alert: There May Have Been Two Mini Flash Crashes Last Week No One Noticed
Themis Trading, a brokerage firm known for its anti-high frequency trading stance, believes two stocks may have experienced mini flash-crashes Thursday, the Wall Street Journal’s Steven Russolillo reports.
At 9:55 a.m. that day, shares of Thermo Fisher Scientific and Pall Corporation plummeted more than $1, only to regain most of that value in a matter of minutes.
Thermo and Pall both declined to comment on the situation, but Themis has posted an open letterto the two companies calling out their stocks’ strange behavior, and their apparent lack of response:
“Your stock is now tossed around intraday in a hot-potato fashion amongst 13 stock exchanges and over 40 dark pools. While this hot potato game is going on, high frequency traders attempt to arbitrage profits either by collecting liquidity rebates or by taking advantage of the slowness of your stock quote.”
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