Due to an unknown error the U.S. market for 15 minutes lost over $ 1 trillion

Yesterday’s trading on Wall Street, no doubt, will enter the history books under the name of another “Black Thursday”: a few minutes the Dow Jones index fell by almost 1000 points, the S & P 500 lost just 8.6%, the newspaper Vedomosti.

According to the company’s Wilshire International, dedicated to the statistics on Wall Street, for 15 minutes, the market lost more than 1 trillion dollars. “It was the largest drop in the Dow Jones industrial average in its history”, – said the site CNN Money.

News concerning Greece and the passivity of the ECB, have already been won back the market to 14.42 local time in the U.S., when the index suddenly went into a nosedive. By 14.47 Dow Jones Industrial Average sank to a mark of 10 000 points, losing 998.5 points. Prior to that, the most significant drop in the day in the history of the index was on Sept. 29, 2008, when Dow Jones fell by 777.68 points.

Stocks of many companies suddenly worthless. Thus, securities Accenture PLC or Boston Beer Co. lost almost 100% of its value: they gave a penny. Index funds, whose shares are traded on the stock exchange, instantly evaporated. For example, shares of the Fund iShares Russell 1000 Value Index Fund, the capital of which amounted to 9.5 billion dollars, have fallen in price from $ 59 to 8 cents. Shares Procter & Gamble, one of the most stable blue chips on the market, two minutes lost 35% of the cost. “Everything happened so quickly, as if shot flew. It was hell,” – says a senior strategist at T3 Capital Management Scott Redler.

By 15:07 the market is played back 500 points and closed at 347 points below the previous day.

Commission on Securities and Exchange Commission with the Commodity Futures Trading Commodity stated that they would investigate “unusual trading activity”. Major stock exchanges of the country are trying to find faults in the trading systems or to detect possible errors by traders. New York Stock Exchange in its statement noted that its system was not fixed technical failure, which could provoke dumping shares.

Some exchanges are considering to cancel the bid yesterday. So, Nasdaq said yesterday evening that all bids made in the interval between 14.40 and 15.00, which were for amounts up to 60% more or less than the cost of a financial instrument at 14.40, will be considered invalid. “The decision may be appealed”, – stated in the Nasdaq. Just do the same on the NYSE Arca.

By the evening appeared a version that has sent markets into a tailspin a single trader Citigroup due to random error. “Everyone assumed that the collapse in the Dow Jones 998 points on Thursday afternoon reflected the spreading speed of the epidemic fears of a possible default of the sovereign debt of Greece. But as the recovery of the market closer to the bell at the closing of the rumors have become much more disturbing – a trader dealing in the main chance led the team to sell futures at $ 16 billion instead of $ 16 million, as he wished, plunging the market into chaos, “- wrote website Forbes. Thus, a trader Citigroup, has participated in electronic tenders, mixed up the first letter in the word “billion” and “million”.

However, Citigroup has issued a statement stating that “they have no evidence that Citi has been involved in any wrong transaction.

Some analysts concede that market failure could have been provoked by one of the major players. For example, firms that use computer programs to commit huge amounts of trades per second, could accelerate the overall decline.

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