Shining a light on the flash crash

Flash cordons

flashlight

The flash crash might have been precipitated in minutes, but regulators and market participants have spent months turning over the details of exactly what happened. The basic facts are clear: at around 2:45pm on May 6, the Dow Jones Industrial Average (DJIA) went into freefall, quickly collapsing by 998.5 points before rebounding almost as rapidly. The stock index eventually closed at 10,520.32 points, down just 322.86 points on the day.

Speculation over the causes of the carnage is rife. Some h