My latest at Alpha Baskets looks at the extent to which some investors “got hosed” on stop orders that elected during that 10 minute, 1100 point swoon on Monday. As I discuss in the post, something seems to have changed with the exchanges’ reliability and how they execute orders. While it would be great to solve these issues, it is for now most important to be aware of them.
Earlier in the week I was joking with a colleague about how in the 1990’s the online brokerages had outages or other forms of disruption all the time, it was after all the dawn of the internet as a household utility, but that the exchanges never had problems. Somewhere along the way that reversed, brokerage downtimes have all but disappeared while at the same time between the flash crash of 2010 and a couple of failed IPOs (as in failed execution) the exchanges regularly send someone on stock market television to reassure participants that things are working.
Please click through to read the entire post.
Ogren Stadium, home of the Missoula Osprey, Class A Affiliate of the Arizona Diamondbacks.