Talk:2010 flash crash/Archive 3

Dr. Mizrach's comment on this article

Dr. Mizrach has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

"According to a December 6, 2015 article in the Wall Street Journal, new regulations put in place following the 2010 Flash Crash — when "bids on dozens of ETFs (and other stocks) fell as low as a penny a share[8] — proved to be inadequate to protect investors in the August 24, 2015 flash crash, "when the price of many ETFs appeared to come unhinged from their underlying value." — ETFs were put under greater scrutiny by regulators and investors. August 2015 flash crash.[8] Analysts at Morningstar claim that,[8]

"ETFs are a 'digital-age technology' governed by "Depression-era legislation."

— Morningstar December 6, 2015"

My alternative:

In June 2010, the SEC began to introduce new regulations to address the Flash Crash. Circuit breakers, which had previously been applied in response to market wide movements, were extended to individual stocks (https://www.sec.gov/rules/sro/nms/2012/34-67091.pdf).

"On April 21, 2015, nearly five years after the incident, the U.S. Department of Justice laid "22 criminal counts, including fraud and market manipulation" [9] against Navinder Singh Sarao, a trader. Among the charges included was the use of spoofing algorithms; just prior to the Flash Crash, he placed thousands of E-mini S&P 500 stock index futures contracts which he planned on canceling later.[9] These orders amounting to about "$200 million worth of bets that the market would fall" were "replaced or modified 19,000 times" before they were canceled.[9] Spoofing, layering and front-running are now banned.[2]

My alternative

The official SEC-CFTC explanation of events of May 6, 2010 was an unusually large sell order in the futures market by a Kansas City trading firm, Waddell and Read. Recently, a London based trader, Navinder Singh Sarao has also been linked to the Flash Crash.

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

We believe Dr. Mizrach has expertise on the topic of this article, since he has published relevant scholarly research:

• Reference : Cheng Gao & Bruce Mizrach, 2013. "High Frequency Trading in the Equity Markets During U.S. Treasury POMO," Departmental Working Papers 201320, Rutgers University, Department of Economics.

ExpertIdeasBot (talk) 19:43, 1 July 2016 (UTC)

You write "Dr. Mizrach has reviewed this page": where is his review? Your first proposal involves omitting several relevant and referenced statements. So does your second. You write "We believe...": who is "we"? You cite a paper by Gao and Mizrach: has it been published? What statement do you cite it support of? Maproom (talk) 19:59, 1 July 2016 (UTC)

Dear Maproom, we are a group of researchers at the University of Michigan, Carnegie Mellon University, and University of Pittsburgh. We developed a system that matches research publications with Wikipedia articles and recommends related Wikipedia articles to domain experts to review and comment on. You can find more information about our project and our ExpertIdeas bot here. In terms of this article, the comment provided by Dr. Mizrach starts with "According to a December 6, 2015 article" and ends with "Navinder Singh Sarao has also been linked to the Flash Crash." The publication that is references at the end of the post is just to indicate that Dr. Mizrach has expertise on the topic of this article. I.yeckehzaare (talk) 22:07, 1 July 2016 (UTC)