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URL:  http://boards.fool.com/mysterious-algorithm-was-4-of-trading-activity-30307700.aspx

Subject:  Mysterious Algorithm Was 4% of Trading Activity Date:  10/8/2012  8:40 PM
Author:  desertdaveataol Number:  405593 of 461332

Mysterious Algorithm Was 4% of Trading Activity Last Week

A single mysterious computer program that placed orders — and then subsequently canceled them — made up 4 percent of all quote traffic in the U.S. stock market last week, according to the top tracker of high-frequency trading activity. The motive of the algorithm is still unclear.

The program placed orders in 25-millisecond bursts involving about 500 stocks, according to Nanex, a market data firm. The algorithm never executed a single trade, and it abruptly ended at about 10:30 a.m. Friday.

“Just goes to show you how just one person can have such an outsized impact on the market,” said Eric Hunsader, head of Nanex and the No. 1 detector of trading anomalies watching Wall Street today. “Exchanges are just not monitoring it.”

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http://www.cnbc.com/id/49333454
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