Thursday, August 22, 2013
The market is having a freeze today, some are calling it a Flash Freeze, at the Nasdaq but it is having an impact across all markets.
Where the technology of trading evolves it seems like it has become more prone to glitches than it used to be. In the late 1990s when I was at Schwab the website went down all the time causing chaos and I imagine this occurred at other online brokers back then too. Then things got much better in the early to middle years of the last decade thanks probably to improvements that lead to more robust systems.
Obviously technology platforms always try to move forward and we seem to be reverting back to that late 1990s where problems, even if much different than they were 15 years ago, occur more frequently. We have seen the Flash Crash, the BATS failed IPO, the Facebook foul up, what is happening today and there are no doubt others that I am forgetting.
Investor confidence in markets has obviously been very fragile because of the crisis and this won't help, especially if a bunch of people end up thinking they got hosed on executions once the Nasdaq reopens. If you have any orders in and waiting, especially market orders, you are at risk for getting a fill that you won't be happy with. If I had any orders in I would try to cancel them.
Posted by Roger Nusbaum at 11:15 AM