What do last weeks BATS crash and Amazon book price war have in common?
The BATS crash affected not only BATS’s IPO but also Apple stock for 5 minutes.
What happened is that a malicious, 100% intentional Nasdaq algorithm purposefully brought BATS stock to a price of 0.00 within 900 millisecond of the company's break for trading! This is open SkyNet warfare.
But perhaps the only cause of BATS crash was a poorly designed algorithm and system (and no NASDAQ vs BATS Skynet wars) - a system/algorithm that was not tested properly for all the real-world conditions.
The BATS crash appears very much like the book price algorithm wars on Amazon where a book got priced at $23.6 million because two (poorly designed) pricing algorithms were trying to outdo each other with no relation to reality.
Tags: cause of BATS crash, BATS crash theory, algorithm price wars, BATS crash and Amazon, BATS vs NASDAQ wars, algorithm wars, HFT trading wars, poorly designed trading algorithms