ETF Flash Crashes Happen With Big Funds Too

In the aftermath of the 2010 Flash Crash, the SEC investigated ways to prevent the widespread disruption of prices that led to trades at absurd levels.  One of the outcomes was the creation of single-stock circuit breakers across the entire market (SEC document).  These breakers are designed to halt trading at specific points to allow markets to stabilize before restarting.  Bigger drops triggered longer waits …

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