“Furthermore, after review, Nasdaq has not found any reason to cancel trades that were made during this event,” he added.
Previously, brokers had described the event as a “flash crash” attributable to a mistaken trade on a slow holiday trading day.
The referential index of the Stockholm Stock Exchange OMX 30 was one of the hardest hit, losing 8% at one point after a five-minute dropbefore reducing most of it and giving up 1.7%.
Sweden’s financial supervisory authority said earlier that it was investigating the crash and was in contact with US trader Nasdaq, which runs Stockholm and other stock markets in the Nordic region. Nasdaq quickly ruled out a bug in its systems.
Other indices also fell, such as those for Denmark, Norway, Germany, Italy and France, but later recovered.
The move extended the decline in the pan-European STOXX 600 index by more than two percentage points in the space of about two minutes.although the closure of the London markets for a holiday reduced volumes.
A gauge of euro zone stock volatility also rallied sharply to its highest since mid-March at 35.99.
“It was strange in those minutes”, said Martin Munk of Jyske Bank, adding that many concerned customers called asking what was going on.
Munk indicated shortly after the event that it appeared to be a misoperation or technical failure. “It doesn’t seem like it was triggered by an event in the world, because that news would have already reached us,” he pointed.
Brokerage Nordnet said the sudden move was a “flash crash” that caused a brief panic in the market, while traders in Frankfurt and London said it could have been caused by algorithm-based trading gone haywire or a big “big toe” trade.
Source: Ambito
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