November 30, 2012

Whiting Petroleum Fat Finger Trading, 250 msec Slow Trading Algos?


Whiting Petroleum fat finger trading, 250 msec slow trading algos? 
 


ZeroHedge on Whiting Petroleum news headline and the algo trading that followed 
Whiting Petroleum Corp. explored selling itself [BULLISH buy buy buy] earlier this year but decided not to proceed after buyers balked over the oil producer’s asking price [BEARISH sell sell sell], according to people familiar with the sale efforts.

By the time the algos had read that first sentence of a WSJ Deal Journal blog post, the stock had pumped-and-dumped over 8% in 250 milliseconds - at which point humans entered the party (and sold). Efficient liquidity providers indeed.
If it took the algos 250 msec to interpret the full headline and convert from the initial Buy to Sell, these are some slow algos.


Tags: whiting petroleum trading, whiting petroleum fat fingers trading, whiting petroleum algo trading, slow trading algos