The hotel chain’s shares jumped from roughly $40.96 a share to $43.00 a share in 100 milliseconds at 11:19:57 a.m., according to Eric Hunsader, chief executive of Nanex, a provider of real-time data to traders. The shares traded down to $41.18 a share a second later.
Meanwhile, Williams-Sonoma dropped from $53.50 a share to $51.27 a share in less than a second at 9:31 a.m., before recovering to $53.25 a share in the next four seconds. The NYSE cancelled trades in Williams-Sonoma executed at or below $51.96 a share between 9:31 a.m. and 9:32 a.m.
The two mini-flash crashes come as the Securities and Exchange Commission has been grappling with market structure issues. The agency has implemented a series of new rules responding to the “flash crash” that rattled the markets on May 6, 2010.
The fast Williams-Sonoma dive and the Hyatt bump weren’t as extreme as what happened to the price of Anadarko Petroleum last month. The $45 billion company’s stock price was temporarily wiped out in seconds late in the trading day on May 20, before recovering.
Nevertheless, the Hyatt and Williams-Sonoma mini-crashes are worth noting. Hunsader contends that the trades were poorly executed large market orders that were overwhelmed by today’s computerized market environment.
“Ten years ago this would not have happened,” Hunsader said. “When there are a bunch of computers executing trades with no obligations you can get rapid dips or rises like this. A NYSE specialist would not have let it fall like that.”
***
EXEL also on Mon 6/3/13
No comments:
Post a Comment