Program Trading
June 23rd, 2006 by 
reality
For the most recent reporting period (w/e June 16), program trading accounted for 69.7% of NYSE volume. These large trades aren’t by any means all the computer-driven trades, lots of folks have black boxes sitting on the internet trading away as well, but those aren’t reportable. It is probably safe to assume that 90% or more of all volume is now computer-driven, algorithmic trading.
Program trading, then at 12% of volume, has been blamed for the 1987 crash. Draw your own conclusions about the riskiness of this practice.
Posted in Truth and Trivia | 
June 25th, 2006 at 4:24 pm
[...] The article Financial Reality Program Trading warns that the current levels of program trading are way above the 12% level that likely contributed the 1987 crash. [...]