Bad Day for BATS—and for High-Frequency Trading

Reported by Jeff Cox, Friday, 23 Mar 2012, 8:04 PM ET, Consumer News and Business Channel

It was a bad day to be BATS. Its trading platform experienced a blunder on Apple—the highest-profile company in the world—and forced BAT to withdraw its IPO on the stock’s first day of trading.

Both the ramifications of the BATS exchange blunders weren’t entirely clear on Friday, but the headline-grabbing events certainly can’t have helped the company’s image—or that of high frequency trading.

The first problem for BATS came at 10:57 am when 100 shares of Apple[AAPL  596.05    -3.29  (-0.55%)   ] hit the tape at $542.80 — a price more than 9 percent off the $598.37 level where the tech titan was priced. Apple trading was halted for a few minutes, then resumed with little price disruption.

Meanwhile, shares in BATS [BATS  15.25  —  UNCH    ] itself, which trade on Nasdaq, were halted less than an hour later. The stock was already off 4.7 percent at $15.25.

Read More>>

Advertisements
This entry was posted in Business, Finance, U.S. Economy, World Economy and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s