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ClueBot NG (talk | contribs) m Reverting possible vandalism by 154.80.26.32 to version by Redtree21. Report False Positive? Thanks, ClueBot NG. (4291981) (Bot) |
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In a 2011 article that appeared on the ''Wall Street Journal'' on the eve of the anniversary of the 2010 "flash crash", it was reported that high-frequency traders were then less active in the stock market. Another article in the journal said trades by high-frequency traders had decreased to 53% of stock-market trading volume, from 61% in 2009.<ref name=WSJminicrash>{{cite news|url=https://www.wsj.com/articles/SB10001424052748704322804576303522623515478 |title=Mini 'Crashes' Hit Commodity Trade |date=May 5, 2011 |author1=Carolyn Cui |author2=Tom Lauricella |work=The Wall Street Journal | access-date= May 7, 2011 }}</ref> Former Delaware senator [[Ted Kaufman|Edward E. Kaufman]] and Michigan senator [[Carl Levin]] published a 2011 op-ed in ''[[The New York Times]]'' a year after the Flash Crash, sharply critical of what they perceived to be the SEC's apparent lack of action to prevent a recurrence.<ref name=KaufmanLevin>{{cite news|url=https://www.nytimes.com/2011/05/06/opinion/06kaufman.html|title=Preventing the Next Flash Crash |date=May 6, 2011 |author1=Edward E. Kaufman |author2=Carl Levin |work=The New York Times | access-date= July 13, 2011 }}</ref>
In 2011 high-frequency traders moved away from the stock market as there had been lower [[volatility (finance)|volatility]] and volume. The combined average daily trading volume in the New York Stock Exchange and Nasdaq Stock Market in the first four months of 2011 fell 15% from 2010, to an average of 6.3 billion shares a day. Trading activities declined throughout 2011, with April's daily average of 5.8 billion shares marking the lowest month since May 2008. Sharp movements in stock prices, which were frequent during the period from 2008 to the first half of 2010, were in a decline in the Chicago Board Options Exchange volatility index, the VIX, which fell to its lowest level in April 2011 since July 2007.<ref name=WSJ110505/>
These volumes of trading activity in 2011, to some degree, were regarded as more natural levels than during the financial crisis and its aftermath. Some argued that those lofty levels of trading activity were never an accurate picture of demand among investors. It was a reflection of computer-driven traders passing securities back and forth between day-trading hedge funds. The flash crash exposed this phantom liquidity. In 2011 high-frequency trading firms became increasingly active in markets like futures and currencies, where volatility remains high.<ref name=WSJ110505>{{cite news|url=https://www.wsj.com/articles/SB10001424052748704322804576303543741007746 |title=Traders Exit High-Speed Lane |date=May 5, 2011 |author=Tom Lauricella |work=The Wall Street Journal | access-date= May 7, 2011 }}</ref>
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