Nanex Research

Nanex ~ 19-Oct-2012 ~ Wild Price Spikes

Recent Nanex Interviews:

Our NxCore feed includes a real-time trade price filter that uses statistics to flag price moves that fall outside of a standard deviation. Below is a chart showing the daily counts for all NMS stocks of prices that exceeding NxCore filter level 6. Filter levels range from 2 (lowest) to 7 (highest). Stock prices flagged at these levels are almost always canceled or corrected by the exchange later in the trading session.  The chart below indicates that wild price spikes are happening with greater frequency and magnitude. The highest peak on the right side of the chart is from the October 9, 2012 "Mini-Knight" event.

1. Daily Count of NMS Stocks with Prices Exceeding NxCore Filter Level 6 Since the Flash Crash.
The  Flash Crash had 1,361 of these events, which would skew the scale.


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