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Unformatted text preview: Brenda Hawkins 05/06/10 ECO 405 Mr. Neisser Case Study #5 Nasdaq to Cancel U.S. Trades That Moved More Than 60% (Update2 May 6 (Bloomberg) -- Nasdaq OMX Group Inc. said it will cancel trades of 286 securities that fell or rose more than 60 percent from their prices at 2:40 p.m. New York time, just before U.S. equities plummeted. The Dow Jones Industrial Average plunged almost 1,000 points before trimming its drop and ended down 347.80 points, or 3.2 percent, at 10,520.32. About $700 billion of U.S. stock- market value was wiped out in less than 10 minutes, according to data compiled by Bloomberg. Nasdaq, which investigated trades between 2:40 p.m. and 3 p.m., said it didnt find any technology or system issues that caused declines of as much as 99.9 percent in some shares. Citigroup Inc. may have been the firm that made an erroneous trade, CNBC said, citing multiple sources. New York-based Citigroup said it found no evidence of erroneous trades, and CME Group Inc. said the banks activity in CME stock index futures didnt appear to be irregular or Group Inc....
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This note was uploaded on 06/18/2011 for the course BUS 499 taught by Professor Campbell during the Spring '11 term at Strayer.
- Spring '11