253: Patrick Boyle - Lessons from Financial History and False Expectations in the Markets
Chat With Traders
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What Caused the Flash Crash?
I think there were a few things that caused the flash crash. It was this idea that it was caused by one guy or by a group of traders who were sort of manipulating or bullying the market around. I would argue that a big part of what happened was that market making had become much more algorithmic at that point in time. Anyone intelligent at that point knew like we'd just been through a period of great volatility and we had seen people's trades just being unpicked because they were considered unfair for a variety of reasons.
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