Dark pools...

[Dom2012]

I'm reading a book right now called "Dark pools" ...
http://www.amazon.com/Dark-Pools-High-Sp...0307887170

And after reading the story about Knight capital yesterday and seeing John pick it up in his video, it was just like reading a chapter in this book !!!

"Progress software, a firm that tracks algorithmic trading, predicted that a financial institution would lose $1 billion or more in 2012 when a rogue algorithm went into an "infinite loop" which cannot be shut down.
http://www.progress.com/en/inthenews/rog...50410.html

So another book, another topic (high frequency trading) and ANOTHER 2012 crash prediction..... there seems to be a lot of people, from a lot of different angles, all saying we should be expecting something big this year..... I would be rather freaked out if there was!!!

[Ivan]

So that author is predicting crash in 2012?

[Honey]

Everyone is predicting a crash in 2012..

I watched John's video this morning and pretty amazing stuff. Truth is definately stranger than fiction for sure.

Knight is done for. They are out of business. Gone. One little "technical" glitch and they are wiped off the trading floor. Simply amazing and not very comforting for the rest of them traders out there. This was definately a warning signal to them all.

I expected to see more news around on other sites about Knight's previous threats to sue Nasdaq, etc.

H

[Dom2012]

No he was quoting saying progress software was predicting it...see the link under the quote ! If the " splash crash" does happen QE3 will have to be of epic proportions !!!