Exchange differences exacerbated plunge
(NEWSER) - As markets open today, the cause of last week's trading chaos remains unclear, but investigators believe mismatches in rules between the NYSE and newer electronic exchanges, combined with fast, complex computer trading systems, triggered the panic. The sudden drop of a futures contract on the Chicago Mercantile Exchange appears to have pushed down other stocks, triggering some market "circuit breakers" to slow trades. But because the exchanges didn't slow together transactions couldn't match the precipitous plunge. More»