Another Algo Trade Gone Bad?
A system problem on the NYSE caused volume spikes in a number of different names Wednesday morning. The issue apparently stemmed from an error with an algo trade at a major market-making firm. For whatever reason, volumes soared in a number of NYSE stocks. An exteme example is ARC, where share volume is 3.3 million today compared to average daily of only 65,000. Other names seeing extreme share volume due to the system issues and high options volume include: REE (20x average daily share volume; 5.5X average daily options volume), NAT (13.7X share volume, 5.5X option volume), N (6.1X, 3.5X), CDZI (6.1X, 17X), BG (5.9X, 7.7X), TRN (4.9X, 3.5X), KCG (4.5X, 70X). More actively traded names affected by the glitch include KWK, RSH, PEP, FRX, MHR, GT. Implied volatility is moving higher in a number of affected stocks as well — FRX, N, GT, MHR, MCP, PEP, KCG.
Category: All Stocks
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About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.
here's the list of affected names: AA, AAU, ACI, AFL, AGN, AIG, ALU, AMD, AMT, AMTD, ANF, ANR, ARC, ARR, AUY, AXP, B, BAC, BBY, BG, BPL, BUD, BYD, C, CAT, CHK, CLGX, CODE, COH, CSH, CVS, DD, DDD, DE, DG, DHX, DLB, DOLE, DOW, EJ, ETP, EXC, F, FOE, FRX, FSL, GBX, GE, GG, GIS, GLW, GM, GME, GNW, GOV, GT, HFC, HLF, HMC, HOG, HUM, JNPR, JWN, KGC, KKR, KRO, KWK, LAD, LEN, LNG, LODE, LOW, LSI, LUV, LVLT, LYB, LYG, MCP, MHR, MPC, MTL, MTW, MTZ, N, NAT, NAVB, NEM, NG, NLY, NOK, NUS, NVS, NYB, O, P, PEP, PFE, PGH, PIR, PL, PRE, RAD, RBS, REE, RSH, RT, SAN, SD, SLW, SNE, SWN, T, TEU, TIE, TKR, TPLM, TRN, TSM, TWO, UAL, UL, UN, VCI, VG, VNR, VZ, WAG, WFC, WLP, WPI, YGE.