Bots Gone Wild on Wall St.

bots_gone_wild_on_wall_st DDOS

The Dow plunged over 1,000 points today.  At the open the market proceeded to rally then sell off several times thru out the day.  Computer traders known as high frequency traders (HFT) were having a field day.  The retail public on the other hand using typical online broker dealers like TD Ameritrade, Scottrade, and Interactive Brokers for order entry were slowing to a crawl.  Some couldn’t even log into their accounts.  Orders and fills were delayed up to 10-20 minutes before getting a report.  I wouldn’t be surprised if this login issues was a DDOS attack on them.

Looking at this from a security breach point of view, was this really a typical flash crash or was this an attack on exchanges and online broker dealers from cyber attackers at the user login? The steps involved:

  1. Flash out exchanges via quote stuffing
  2. Disable retail investor login via DDOS attack
  3.  Run wild

Below is a display of the volume from last Friday vs. Monday’s open in the first 10 minutes of trading.  The market began to do massive volume through out the day.  Nanex has some great stats of the quote stuffing and algos going crazy.   As always, we probably won’t hear much from this for awhile.

BotsGoneWild on Wall St