Gensler says algorithmic trading contributed to May 6 plunge

05/20/2010 | Wall Street Journal, The

Gary Gensler, chairman of the Commodity Futures Trading Commission, discussed the May 6 "flash crash," saying algorithmic trading likely contributed to the market plunge. "Usually, high volume indicates high liquidity," Gensler said. "On this day, however, high volume could have been a misleading indicator of liquidity to market participants and their preprogrammed algorithms."

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