088: Dave Lauer – A Former-High Frequency Trader Talks Speed, Market Structure and Dark Pools
Chat With Traders
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The Flash Crash: What Caused It?
There was no cause of the flash crash. It's a million individual actions that led to something like that. The system entered a positive feedback loop and all these agents reacted in the same way, much like we did on our trading floor. That's the kind of thing we see on a regular basis on a single stock level now. We need market making on different timescales. In the US, we don't go down that path. But in other countries, like Australia and Canada, you guys have. I think that makes for stronger markets.
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