Commidity market crash

[rishab dhar]

In the recent week, there has been a massive crash in commodities, resulting in silver being routed the previous week, the gasoline futures crashing yesterday, and other abrupt and insane moves. Is this 2005, or 2008, or may 2010.

Is this because of quant funds that employ algorithmic trading/HFT etc ?

We have already witnessed flash crash in 2010 May, which resulted in Accenture being traded at a penny for a brief moment. In any sane market, this wouldn't happen.

If this volatility is really the result of HFT/algorithmic trading systems, which do not care about human perception of the value of a particular thing, it then begs the question : Should such trading be banned or limited. Should the uptick rule be reinstated?

 

[Joy Pathak]

It's normal. Everything happened for a reason. There was no moved that occurred that was not explained by fundamentals or regulation (margin requirements).

 

[darth]

Why do people have bias against short sellers.... Why to have an uptick rule... I would rather vote a downtick rule in commodities....