‘Flash Crash’ In India’s NSE: 7 Percent Fall In Few MinutesApril 26, 2012 3:36 am
“More details are emerging on Friday’s ‘flash crash’ incident. In a communique to trading members, the National Stock Exchange (NSE) on Monday revealed that algorithms had no role to play in S&P CNX Nifty futures’ near-seven per cent crash within the space of a few minutes last week. Such a message was put out by the exchange on Monday morning on broker trading terminal NOW (Neat-on-web).
However, NSE in the same message said the crash in Infosys shares “seems to be due to a member’s algorithm malfunctioning”. NSE further said, “Nifty price variation on that day is also being examined and prima facie, the price fall does not appear to be born out of similar circumstances. A detailed examination is underway and a report is being submitted to Sebi (Securities and Exchange Board of India).”
Statistics Source: Business Standard