A single algorithm which placed and then cancelled orders on the Nasdaq accounted for 4% of all quoted traffic in the US with no clear goal.
An anonymous French investor who goes by the name of LC and writes the blog Margin Call www.margincall.fr, told FRANCE 24 in a telephone interview, “This system had numerous unusual features: the main one being the sheer number of orders placed.”
One thing is for sure: the operation was not designed to make money. Executing no actual transactions, the programme had no effect on the stocks involved. “Simply flooding the system with orders looks like a way of testing the limits of the algorithm,” LC explained.