University of Vermont

Office of Undergraduate Research

Stock Market Study Catches Attention of WIRED Science

Photo: © Copyright 2006, The Nasdaq Stock Market, Inc.
Photo: © Copyright 2006, The Nasdaq Stock Market, Inc.

A new study led by UVM's Brian Tivnan (Vermont Complex Systems Center; MITRE) and TEDxUVM presenter Neil Johnson analyzing the stock market's "flash crashes" and "spikes" has caught the attention of WIRED Science, "Nanosecond Trading Could Make Markets Go Haywire":

"The afternoon of May 6, 2010 was among the strangest in economic history. Starting at 2:42 p.m. EDT, the Dow Jones stock index fell 600 points in just 6 minutes. Its nadir represented the deepest single-day decline in that market’s 114-year history. By 3:07 p.m., the index had rebounded. The “flash crash,” as it came to be known, was big, unexpected and scary — and a new study says flash events actually happen routinely, at speeds so fast they don’t register on regular market records, with potentially troubling consequences for market stability."

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