someone got carted in the bobl today

NeroTulip · Post by **NeroTulip** » Tue Dec 28, 2004 5:15 pm

anybody knows exactly what happened?

Nonius · Post by **Nonius** » Tue Dec 28, 2004 5:33 pm

then Ralph said, "What's a Bobl?"

[img]http://www.uwm.edu/People/dgdohr/ralph1.gif[/img]

FDAXHunter · Post by **FDAXHunter** » Tue Dec 28, 2004 5:35 pm

The trades will be busted.

AndyM · Post by **AndyM** » Tue Dec 28, 2004 7:07 pm

Apparently, they're going to be allowed to stand.

Good; its about time that the fat finger merchants got burned, rather than those who innocently take the other side.

apine · Post by **apine** » Tue Dec 28, 2004 7:40 pm

so what are the details?

FDAXHunter · Post by **FDAXHunter** » Tue Dec 28, 2004 7:56 pm

Yes, they will stand.

From Eurex:

[b]Vola Interruption in FGBM MAR05 - Follow-up

[/b] 28.12.2004 18:45 1

Trading in FGBM MAR05 before the Volatility Interruption at 17:00:30 CET was orderly.

The trades in FGBM MAR05 are, in principle, valid and will stand.

Anyway, for those interested, we're talking about this:

[img]/beta/User%20Files/2/FGBMH2005%20Incident%202004-12-28.gif[/img]

apine · Post by **apine** » Wed Dec 29, 2004 2:38 am

that's either a big OOPS or a citi wanna be.

JamesH83 · Post by **JamesH83** » Wed Dec 29, 2004 4:28 am

so who made some money outta this?

James · Post by **James** » Wed Dec 29, 2004 11:51 am

Okay, I am both stupid and lazy. Can someone explain this to me? It looks a bit more than a 'jump process'....more like an asymptope or a discontinuity, or piece-wise function. My brain hurts just trying to figure it out. Can someone give this non-vol, non-gamma trader a thumbnail sketch of what happened?

AndyM · Post by **AndyM** » Wed Dec 29, 2004 12:28 pm

I guess someone had finger trouble (or elbow trouble, for those who remember the famous F12 incident (scroll down for the scoop) Smiley ). Lots of stops would have been triggered too, and the whole thing just fell out of bed.

This is the one problem with electronic trading; liquidity holes of this magnitude just wouldn't happen (as easily) in a pit. (of course, the quid pro quo is that you'd have lots of (induced) small liquidity holes instead...).

Anyway, looks like trading was suspended for 20 mins to try to put Humpty together again.