Why Did Flash Crash Report Miss This One Key Topic?

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Mark Melin
Published on
Updated on

The search for causation over the May, 2010 “flash crash,” a one hour near 1,000 point loss and recovery on the Dow Jones Industrial Average, is a complex topic but one important to accurately document. Such quantitative market mishaps only have the potential to cause more economic damage as society becomes increasingly dependent on technology and “artificial” intelligence. Initially regulators publicly blamed a “fat finger” on the market sell-off that had no fundamental basis as a computer, not a finger, was involved. But a more nuanced and detailed report pointed to a single market participant for causation. In support of the…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.