On May 6, 2010, the stock market crashed. For about 20 minutes.

• No one is exactly sure how it happened, but it had a lot to do with the way electronic trading works (or doesn’t work). After the crash, people began to look carefully at the intended and unintended consequences of digitizing the trading process.
• High-speed trading systems have made investing cheaper and faster. Wall Street traders demanded greater speed, and SEC and FTC regulators allowed technology upgrades to continue unchecked for a long time.
• The SEC has been investigating the crash for months and is about to release its official report. As part of that process, the SEC is acknowledging its own role and failings in the regulations leading up to the brief financial meltdown.

Facts & Figures

• During the crash, the DJIA dropped almost 700 points before rebounding.
• In January, the SEC showed signs of questioning the new structure of the stock market.

Best Quote

“Who could argue that competition was a bad thing … and that faster trades would be a bad thing?” – Joseph Saluzzi, Co-Head of Trading at Themis Trading