Regulators and lawmakers may have been too quick to blame high-frequency trading for Monday’s late-day selloff in the petroleum futures complex, Larry Tabb, founder and CEO of TABB Group, said Thursday.
“Markets are complex,” Tabb said on the sidelines of a US Senate Banking Committee hearing on computerized trading. “There’s a lot of buying interest and a lot of selling interest and if something all of a sudden gets in the way of one or the other … you wind up with these air pockets.”
On Monday, October crude tumbled from $97.85/barrel to $94.83/b within a minute at 1:54 p.m.
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