Blame humans, not high-speed traders, for "flash crashes," SEC says

06/18/2013 | Reuters · Bloomberg

The Securities and Exchange Commission said "flash crashes" involving a single stock are most likely attributable to human error rather than high-speed trading. "What we are seeing is the result of sloppiness, combined with a lack of checks and balances," the SEC's Greg Berman said at a SIFMA conference. "Contrary to public speculation, these types of events do not seem to be triggered by proprietary high-speed algorithms, by robots gone wild, or by excessive order cancellations," he said.

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