Friday, September 2, 2011

Investors Flee Dark Pools As Market Volatility Erupts

from WSJ:

>>The number of messages such as stock quotes channeling across U.S. markets surged to 2.8 million per second during the worst of the May 6 ”flash crash,” overwhelming traders and contributing to the seize-up in information flow. The same figure now reaches more than 5 million messages a second without any hiccups in the market, according to data from Equinix Inc. and Exegy Inc.

As the blue-chip Dow Jones Industrial Average fell more than 250 points Friday, the figure briefly shot above 5 million. “Exchanges really led the way” enabling U.S. markets to handle more of those messages, John Knuff, general manager for global financial services at Equinix said in an interview.

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