Nifty plunges 900 points on ‘flash crash’; NSE to probe MUMBAI/CHENNAI, OCT 5: A ‘flash crash’ sent the National Stock Exchange’s Nifty into a tailspin soon after the market opened. The Nifty plunged nearly 900 points to a low of 4,888.20 (Thursday close: 5787.6) on what the NSE called ‘erroneous orders’ executed by Emkay Global Financial.
15-minute disruption: Trading was disrupted for nearly 15 minutes following the incident.However, the Nifty recovered to close the day at 5746.95, a fall of 0.7 per cent.According to marketmen, orders could not be executed during the period due to a freak algo trade. In algorithmic trading, traders use electronic platforms for entering orders with an algorithm deciding the timing, price and quantity of the order without human intervention. However, the NSE denied algo trading was the reason for the crash............http://www.thehindubusinessline.com/markets/stock-markets/article3967651.ece
Freak trade at NSE erodes Rs 10 lakh cr investors’ wealth
MUMBAI, OCT 5:
A flash 900 - point crash in the National Stock Exchange’s index Nifty this morning eroded an estimated Rs 10 lakh crore of investor wealth, though for a brief period. The Nifty showed a sudden fall of nearly 900 points, or over 15 per cent within seconds, triggering the circuit filter (maximum permissible limit of movement in the index), halting the trade at 0950 hrs for 15 minutes.During the period, the investors’ wealth slumped by nearly Rs 10 lakh crore.
The Nifty finally closed the day at 5,746.95, down 40.65 points or 0.70 per cent, recovering most of the initial losses. On the other hand, the Sensex ended 119.69 points lower at 18,938.46. Market regulator Sebi has begun initial probe into the flash—crash. NSE has claimed there were no technical glitches in its system and the crash was due to ‘erroneous’ trade orders worth over Rs 650 crore by Emkay Global, which has been now disabled by the bourse for trading.........
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