Thursday 6 May 2021

flash crash

Triggered by a combination of human error—so called fat-finger trades that if not invalidated within thirty minutes after execution are considered legitimate—automated trading protocols set on edge by the sovereign debt crisis in Greece, over the course of thirty-six minutes of the trading on this day in 2010, US stock indices collapsed, loosing over a trillion dollars in wealth. The markets for the most part recovered quickly and additional regulatory safeguards were put in place to prevent the same thing from happening again. It held the record for the most volatile day for American stocks with the largest intraday change in valuation until August of 2015 when global markets faltered over concerns about the viability of the Chinese economy, but both events were pushed way down in the rankings by the crashes of 2020 caused by the pandemic.