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Friday, 24 April 2015

BEWARE: Futures Can Crash Stock Markets

How futures trading could crash stocks

The US equity market ‘flash crash’ of May 6 2010 has long highlighted the pronounced link between futures exchange contracts and the share prices of companies bought and sold by investors of all stripes. 

Regulators digging into what sparked an abrupt collapse of share prices, where the likes of Accenture briefly traded at 1 cent per share before a stunning rebound inside twenty minutes, concluded back in 2010 that trading via equity futures in Chicago was the spark that had lit the flash crash fuse. Financial Times - Read More

Who Knows What  Could Happen Next Time?

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