Flash Crash 2010 | VPRO documentary | 2011
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- Опубліковано 7 лют 2025
- Money & Speed: Inside the Black Box is a thriller based on actual events that takes you to the heart of our automated world. Based on interviews with those directly involved and data visualizations up to the millisecond, it reconstructs the flash crash of May 6th 2010: the fastest and deepest U.S. stock market plunge ever.
Money & Speed: Inside the Black Box is developed by filmmaker Marije Meerman in close collaboration with design studio Catalogtree. This explorative documentary is a marriage of strong storytelling and meticulous visual analysis. This film is also available in English as an iPad-app in the Apple app store as the world's first Touch Doc.
TO THE APPSTORE:
itunes.apple.c...
Originally broadcasted by VPRO in 2011.
© VPRO Backlight January 2011
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Credits:
Director Marije Meerman
Design Visualisations: Catalogtree
Research: Gerko Wessel
Photography: Maarten Kramer
Sound: Eric Look
Editing: Rinze Schuurman
Music: Joris van Gunsven
Programmer: Systemantics, Noodlewerk
Financial Data: Share Company, Nanex, Tickdata
Re-recording mixer: Jaim Sahuleka
Color Grading: Jeff Grosveld
Producer: Mariska Schneider VPRO Backlight
Project Management: Gert Jan Kuiper, Gerard Meijer
Commissioning Editors: Henneke Hagen, Jos de Putter
English, French and Spanish subtitles: Ericsson.
French and Spanish subtitles are co-funded by European Union.
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"You could go out for a cup of coffee, come back and find you lost a billion dollars. That would ruin your day."
That quote is the best thing I've heard in a long time.
That would be the most expensive coffee in history.
me too.
Aliens did it, how is it that no one figured it out
and the key word here is DAY
But isn't it two way street? You could go to lunch and then return a lot wealthier.
I feel sorry for all those stop losses that got stopped out in that flash crash
This is a brilliant documentary, I love the visual style and the balanced selection of speakers...
When an SEC agent is an ex trader from the Lehman Brothers... no wonder they want to strictly follow the no disclosure laws.
A lot of government regulation has by nature a "conflict of interest". The only way to get people who really know the industry well enough to regulate it is by hiring those who have worked in it their entire lives. Judges are old lawyers, secretaries of treasury are ex-Goldman Sachs executives, and SEC agents are like you mentioned ex Lehman Brothers. It stinks but it is everywhere and it makes sense to a level of why it is but I agree, maybe it should change, these are the real conversations that need to be on the news.
Also, it's the law
@@rambow70 you don't need to work in those industries to understand how they work though. It's just corruption.
That sort of private to public transfer is a huge problem in America. I mean why the fuck do we have Ajit a fucking former Verizon employee now working as the head of the FCC who should be regulating Verizon? It's asinine.
I wish there was more amazing clips like this on UA-cam. Love them
I was trading when the flash crash took place. words cannot describe how flashly it was
Were you working at a bank? How did people react and what did they do at the moment?
ua-cam.com/video/E1xqSZy9_4I/v-deo.html
Obviously u hadn't seen typical interventions of central bank of Japan on USDJPY.
the mysterious "major investment bank" is goldman sachs for those who are wondering
We didn't say that.
My sides are hurting from laughter after reading that
48:01 You are risking all your money, but if everything else collapses too, you're still risking all your money even if you aren't in the market. It is a Catch-22. You can't escape the risk.
I'll never forget it: I was sat as usual coding when all of a sudden I heard shouting from the traders. I thought one of them had a heart attack or something. Then my screen lit up with alerts. Wow.
Interesting , you thought someone had a heart attack.
This Hundsader character is like 1000x smarter than anyone over at the special team created by the SEC
SEC has smart people. They're just corrupt.
The group responsible for the crash is: Goldman Sachs.
Evidence: 1300 Federal Blvd. Carteret, NJ is the building next to Nasdaq servers which belongs to Goldman Sachs.
Why would they crash it?
It was a sophisticated trading strategy:
knowing that they are market movers and now with their advantage of having information before anyone else, they can theoretically and technically place trades so fast down that the other investment companies would think there’s a crash causing lesser sophisticated algos to do weird things such as sell at one cent, while being delayed in the data when the market moves up. The bottom line, Goldman Sachs just sold almost if not exactly at the peaks and bought at the bottom (a hundredth of one cent).
Keep in mind, that it’s 2010, 2 years after the 2008 market meltdown. QE had just begun by the Fed in 2009 to save the global financial system... although the market regained most of its losses through 2009-2010, there was real uncertainty that QE wouldn’t work. So, it would make sense that hedge funds would head-fake one direction but then go the other. Investment company like Waddell & Reed has sophisticated algos that prevented them to lose so much wealth in 5 minutes, that’s why they were glad to hand over their data to figure out who bought their contracts only to be sold with fury.
Goldman Sachs made billions in 5 minutes as their algos were set for a head fake, just sick.
The SEC cannot by law disclose the culprit as Goldman Sachs and they are the market maker and dealer for US Government treasures. Laws harboring criminals, change it!
Startling documentary. Please keep these coming, you may well be documenting the end of life as we know it.
I think one of the big mystery is how all those algo from different firms in play during the crash decided they reached equilibrium at the bottom and decided to rally, surprisingly to the roughly same level as before the crash happenned.
+Kecap Manis imo it's the weirdest part of it all. it's not like all of the algo's these firms run are going to have code consistent with one another to handle this precise situation. very bizarre
Perhaps there was one dominant algo that caused the "turning point" and other algos thought the price has reached bottom and started to rally. Chaos Theory? Understandably the rebound is quite as fierce as the drop. I like to think of it as a stretched rubber band.
+Kecap Manis Not a mystery. Algorithms may be different, differently designed and executed, but the goal behind all is the same - save assets in the event of a crash. That is convergence and that's why they all seemed to rally. The next big thing will probably be an algorithm that handles a crash in such a way as to make profit (short sales?). The race is probably on right now, just no apparent winner just yet.
+Kecap Manis No mystery.. had sloppy algos in 2008.. dumbass moves like pull out 500 contract at last market depth position ,, so it looks like a serious buy.. that strategy is easily picked up now,, my algo does it , an the computer laughs.. i dont have time to even look at it..Only diff is that i start a bank that is transparent, an believe me u cant have a bank without algo.\
The market wipes other institutions out .. thats why it went down that far, its no mystery when its War. Much improved on bullets , dont u think?
Such a well done program - I had to subscribe!
So the machines' algorithms were proving each other to find their buy and sell limits?! What a brilliant engineer that wrote the script that found the trigger point at which got to push the others' algorithms to execute sell orders on the way down even at a loss!
Understated comment!
What really stuns me is when Paul Wilmott said at the end of the film....
Indeed. Also what the quant said is surprising. Long term those +5% years add up, and more than make up for the rare -50% years. Someone so smart should know better.
Anyone else infuriated by that parking at 31:43 ?
Amazing how the "regulator" lol, was the only one who missed it, says it all really .....
thanks for uploading! Dutch people are very smart noticing small machinery pitfalls and able to present to everybody in such an easy to understand way...I subscribed for this channel...after watching this...
This is why we have Monte Carlo simulations. Also these guys missed out on a lot of upside since '09
Look at that crappy parking job at 31:39
must be my mum driving...
The smoking gun
not only taking up 2 slots, but facing in the wrong direction.
Toyota Sienna knows no boundaries
He fixed his parking after the film got cut.
this is the time of the year
46:30 When I heard that they use evolving algorithms to let the computers learn how to trade better that blow my mind. Maschine learning techniques made such great leaps in the last years it is clear to me that they use them for finance as well.
Christoph G. .
na they use em for porno not finance youre wrong brother jiu jetsu man
who is that maniac announcer/commentator guy reacting to the crash, it's played throughout the documentary?
I think that is Jim Cramer from Mad Money.
Its mostly good for entertainment, mainly from laughing at his antics.
It’s actually a UA-camr ua-cam.com/video/_2kEjZSMj6I/v-deo.html
His name is Ben Lichtenstein I think, he used to squawk the S&P pit at the CME.
@@garrystoelk458 Some is him, but Jim Cramer is definitely in there too
Imagine how rich you would be if you could have entered long at the bottom of the crash haha
gl with a 36 seconds delay
@@tradingquebec943 Hahahha. Try trading millions on Bitmex and having a 1 minute delay during big moves designed to fuck as many people over as possible.
I was trading the ES futures that day and learned that my broker, IB, busted a lot of arbitrage trades that day. Even if you think you won, at the end of the day the broker made sure you didn't cash out on the crash.
@@rtkevans since when is arbitrage illegal, and how can a broker decide what to execute? how did they take advantage of the flash crash?
Not rich at all. Trades were broken so...you gained nothing and you lost nothing.
Awesome work vpro :)
Thank you so much! We really appreciate your feedback.
This is why the stock market should be taxed 1/10 of 1 percent instead of personal or corporate income tax.
The only group that wouldn't like this is high speed traders and IRS agents.
Basically the practice of wholesale robbery has been automated.
21:22 You can tell this guy is really good at his job.
kenektik
J
This is scary on so many levels...
Indeed...
Why?
31:40 terrible parking :(
Rishi Narang seems like the only person they've interviewed who's knowledgeable enough to speak intelligently about HFT. Wilmott, after all, is a mathematician, not a practitioner.
"WE CAN'T STOP THE SELLING!!"...
That dude is hilarious
That's Ben Lichenstein, but I heard he stopped squawking the S&P pit
Do you know who Paul Wilmott is??? The man is a living legend in finance. He is basically a god of quantitative analysis.
Could you imagine if you by some freak luck placed a trade during the flash crash and your order was filled for pennys on the dollar? Or if you sold your position before the news broke, because it said the news lagged behind what the markets were doing, and got pennies on the dollar for your trade only to find out that the stock return to normal shortly after? Must have been a hell of a day.
This actually interesting. It could make or break whole industries. It is like a window to the trading of the richest companies making money off the less well off traders. It's frightening.
In summary it was very well planned by more than two big and laraged players.
I think the flash crash was done on purpose as a way of demonstrating what would happen if AG Holder sought to prosecute financiers for the 2008 heist . . . I mean crash.
No
Quants are so smart, i admire them
Rich ass professor double parking a van.... Priceless
had to throw ass in there
Anyone rich doesn't drive a chrysler minivan..
That old piece of shift Toyota?
cause hes a gangsta typer
@4:28 that's a really sharp knife
43:30 I think this guy would make a good actor.
7:56
'Steve jobs didn't die....'
Hmm....
its a conspiracy jk
Y
Awesome show, really enjoyed it
What a great documentary. Dank je wel vpro.
Just imagine the scalpers who were shorting on that day with a take profit
Navinder Singh Sarao no mention of him ?
vpro u r doing a awesome work. i really appreciate your work. Hope govt do something for such gamble a kind of cheating from investors.
Thank you for your message.
Now 2020 we're seeing the biggest crash since the 2008 market crash.
I was thinking the same thing
To Myron, Hip-hop, and community: The 2020 crash has gone viral with its virus akin to Chinese water torture. The markets going forward into April; will jiggle around, making traders believe there is temporary reprieve -- then, the *horsemen will hit the markets* and the global community continuously with more feather tickling wake up calls from the Most-High -- until the feathers turn to lead!
*Yes. Thank you Corona*
It's why we are here😊
Jesus H, is the guy driving around the data centers with a cameraman trying to get everyone in the car disappeared?
This is an excellent video. I think it's interesting right at the end where all the guys involved say they don't own stocks. I think it was 2012 I came to the same conclusion, that the potential gains in stocks was not worth the huge risk. I keep all my former investment money in cash and only trade some options, infrequently, when I think the odds are stacked in the favor of the contract.
It's gambling, but all stocks are gambling. At least I know it's gambling and wait for good odds.
who is the guy narrating the stock collapse. hes amazing
12:35 weird seeing that I live right down the highway from that. Like 15 minutes tops.
48:02 nice sentence to end on. However, there's a thing called a stop loss hahah
High Frequency or not would you when huge companies like Goldman Sachs have an obvious advantage?
a great breakdown
Soooo who bought at the bottom that day?
Larry Harris weote a nice short paper on this for the CFA.
This awareness is like code.
If someone didn't know what they were doing, how could we blame them? If someone knew exactly what they were doing, how will we ever catch them? Quite a predicament....
¡Te felicito por el vídeo! Ha sido una inspiración para mi canal, donde acabo de colgar un vídeo hablando de los Flash Crash ¡Pásate si te puede interesar! Saludos
the historian says every time you buy a computer it goes twice as fast. Hasn't been that way for at least several years.
The camera work in this film is aweful
Now to work on the biggie/smalls crash of 3/09/2020 because of corona virus.
what i don't get is why the SEC isn't allowed to disclose to the public all the information
i mean this is a crisis that affects the whole nation, as a democracy pledged to serve the people shouldn't the US gov be as transparent about this as possible?
if you don't know you are very naive, it fucking obvious
George Dyson is Freeman Dyson's son, (and the spitting image of his father).
48:03 - Stocks in the US just in the last 10 years have had two distinct declines of more than 50%. So, to make 5%, you are risking half your money. That to me is an awful trade.
You don't scoot when you see the crash, YOU BUY THE CRASH. Well, Warren Buffet did, and look where he is now.
31:38 worst parking job ever
Haha, the shitbox's engine probably died and he luckily glided it into a parking lot.
@@tremoo5987 -WRONG. The engine of the Toyota Sienna will outlast whatever vehicle your driving by 300,000 miles. And that is IF and when your vehicle gets to 200,000 miles. Class dismissed.
Maybe I'm high, but did that SEC regulator just tell us he can't disclose the owners of a trade made in PUBLIC stocks, on a PUBLIC stock exchange?
"I saw that panic, so i put on cnn," said the american
WTF?! A hedgefund manager says he doesn't put his own money in the market!??
Lol at the end these guys admitted that they don't own any stocks... if they don't even trade stocks then they are in no position to give advice in how to invest because they don't know how to. But that part on metamorphic machine learning HFT algorithms was really fascinating!
It is 2019 the market is at an all time high I predict a crash is bound to happen if not by the end of the year is going to be like 3 months into 2020 I will then be buying hella puts and become a millionaire 😎
Good luck bro
Congrats hope you did
Are you a millionaire yet?! If not I hope this week makes you one..
*Did you buy puts and become millionaire?*
iAmGionism how did that work out for you 2020 April now virus time
44:17 actually there IS a trader/exchange relationship that allows them to skip to the head of the line BEFORE mutual funds, "normal" ppl large buys occur to capitalize on what high frequency traders call "dumb money". Thus the computer program looks for these types of trades, and uses speed and their "relationship" with the exchange to scalp tickets as it were, and resell to the "dumb" money. Hence the Kansas city Wendell being cited as the cause for the flash crash. In many ways this is absolutely correct, as 4.1 Billion of "dumb money" will make the top trading companies go crazy hence the time lag which for the dumb money DOESN'T matter so long as they aren't selling/buying during that exact time or shortly before/after as their bids will be WRONG, but also LOCKED in as it's supposed to be first come first served hence the 1000 ft cable rule, each of which has a timecode and service number (these numbers apparently allow certain corps to know when to trade hence the classified nature of trades, as no one wants to know who's stolen all their money, gained the most etc...
A rule in wallstreet quants (physics/computer programmers) is that if something goes wrong and you do poorly it's ALWAYS your fault. YOUR software is broken and needs fixing it ISN'T the system that has a issue. WRONG!!! This meant that quants spent yrs afterwards trying to find where their code was broken, to fix the issue only to find NOTHING often leading to smaller trading firms to go bankrupt as all the sudden they stopped being able to make money on almost ALL their trades. They thought it was bc they weren't FAST enough, thus they invested in open air transmission of data as the speed restraints have to do with the laws of physics hence all the top physicists working for wall street atm. Thus fiber optics are almost the speed of light but not quite, thus open air is slighly faster. The issue is that this requires them to be in a area that's flat, free from too many cell towers, other digital noise (unless they choose to increase the signal strength to cut through the noise as well as secondary measures for when there's solar flares, weather issues (rain/lightening all negative) hence they avoid hwys, as cell towers and lots of electricity runs along them TOO, as well as wooded areas (except if they can be at the highest pt allowing them to not run into the data smog. As almost all our communications run through fiber optic cables NOT satellites/open air, as it's far easier to have a clear signal as ANY open air requires either VERY close interaction (lots of cell towers OR high pt towers) as they're NOT allowed to use high power as it cause intefere with other electronics as all phones, computers, electronics create electromagnetic fields, as this occurs anytime electricity runs through metals (hence earth's core is believed to be molten Iron as unlike most planets nearby/moons we still have a atomsphere which is ONLY possible with a spinning, molten core, hence the magnetic north vs true north issues, though the south too has magnetic pole it's just not as strong as the north. Hence we avoid the poles as it effects all electronics, as atm all our phones have GPS turned on for the most part, bouncing signals from 3 or more points (hence all the space junk/satellites and why we've gotten so pissed at North Korea for launching satellites without knowing where other satellites are, causing collisions as satellites MUST track every piece of space junk and fly around them, as a piece as small as a mm can make it unusable. This has led to launching satellites which orbit further away BUT in doing so it will have to deal with more radiation as it's closer to the edge of the earth's magnetic field which shields them. As well as dealing with more instability due to solar flares, as solar flares totally disrupts the markets (yes the SUN causes massive trading issues)
My dad is a RF antenna engineer, as well as working with satellites, fiber optics, cell towers, all sorts of military grade "spying" equipment and things like "COBRA" which is a false cell tower which intercepts all cell tower data and copies it (like EVERYTHING as our cell data isn't encrypted until AFTER it reaches the towers, all we have are assigned numbers, like how computers have IP addresses. Allowing them to access everything from your GPS coordinates which are accurate to within inches nowadays (they used to be inaccurate due mainly to only triangulating the signal as my dad created on of the world's first GPS antennas for Boeing's gov contracts, and then later used that to create one of the first GPS car antennas. However they learned after sorting that out that the real issue was TIME itself, as time is RELATIVE. Thus by being outside the earth (not at the same speed as the universe expands, the galaxy moves our solar system through space, and the sun moves the earth, thus NOTHING is ever in the same space twice. However all this crazy speed doesn't matter to us on earth as we're going along for the ride with everything else on earth thus it's the difference in relative speed between us and other earth objects that matters and you pretty much can't go fast enough at the scale we deal with for it to matter. Even the hadron collider can't get one atom to the speed of light as the speed of light on earth ISN'T the same as the speed of light in space as it's moving through a medium full of shit. Thus in order for near earth orbital satellites, they MUST be moving faster then the earth to stay in orbit at all, therefore they experience time slightly slower then us, thus proving Einstein's theory of relativity once again. As most orbit the earth every hr MAX.
Time is relative as the way we experience time is dependent on the difference between our speeds thus time for the satellite it seems there's NO change as they experience time like everyone else. BUT in reality their speed means that there's a time lag between planet earth and the satellites. Once they fixed this they finally got their GPS to be accurate beyond 30ft. The strange thing is no one realized that the speed was significantly different enough to cause these issues, as it takes quite awhile for the lag to become significant. Thus they kept resetting the clocks when it got off, thinking it was a computer issue only for the same issue to arise again and again. Which is why the astronaut with the most time in the ISS is roughly 15 minutes younger then the rest of us.
This is why Einstein's theory states that "time" travel is possible, albeit only in traveling to the future NOT the past. The issue is the amount of energy required of course, but the issues of the amount of time it'd take ISN'T as you get closer to speed of light the slower everything else is, until it's literally as if the entire universe's time has stopped. Thus our universe may be MUCH younger then expected as the ONLY way to travel faster then light is to be in a expanding universe, hence the red shift seen in galaxies far away OR near black holes as the light waves elongates as space does. Thus means all the light could have already BEEN here as there was NO time until there's space. However MY biggest problem with these theories is that NOTHING is created nor destroyed only it's state changes, the universe goes from order to CHAOS, not chaos to order. For all matter there should be the same amount of anti matter, thus everything should have annihilated leaving NOTHING. As everything came into being as the same time, we should be a major black hole NOT having a crazy rapid expansion. As all the universes matter was contained in one planck or 1X10-32. Though technically we could be in a black hole hence us speeding up NOT slowing down, but then we'd be compressing, have NO time at all, and heating up. Though it'd be hard to tell as that's what it'd look like outside the black hole as within the black hole we'd all be experiencing the SAME forces, thus we'd observe NO change as EVERYTHING is changing at the same rate.
Ok....I really wanted to try and read your comment, but I just couldn't. It was hurting my brain with all of the massively long run-on sentences, and the odd misplacement of some words here and there that made the whole point you were trying to make unclear and almost nonsensical at times. For example in your last paragraph, just after the "Einstein" sentence. You say and I quote; "The issue is the amount of energy required of course, but the issues of the amount of time it'd take ISN'T as you get closer to speed of light the slower everything else is, until it's literally as if the entire universe's time has stopped."
I mean, what are you even trying to say in this sentence? Seriously. It makes no sense whatsoever. English must not be your first language it can't be, and physics is clearly not in your realm of expertise. I'm sorry. Your comment irritated me on so many levels. The only thing I gleaned from it is that you have absolutely no idea what you're talking about. I just want to meet the two people that thumbs'd up your comment, and see what's going on in their brain.
If u had some put options, would be a very good day for u
...and where does Navinder Sarao fit into all this?
So episodes of BILLIONS make complete sense now.
You are just one rogue algo away from losing your retirement : )
Stock market is a scam lol
Shorting has never been this great.
Black Wednesday was pretty good, and the Swissy drop.
Try cryptos.. 20-40% swings in a day are totally normal there.
In a day? That's a calm day.
@@LemonChieff 40% is a big deal, even in crypto.
Crypto mkts are peanuts. Its entire mkts lower than mkt cap of MSFT
It'd be possible to introduce the ability to source where trades are coming from.
De beschrijving van deze video: "De VPRO is vanwege de nederlandse wetgeving genoodzaakt deze video te blokkeren binnen Nederland."
Waarom? (Ik kijk vanuit België)
A good piece of advice, listen well... 48:03
hahaha Finance costs and revenue aren't disclosed separately on a I/S when it's a financial company.. It's just pushed into operating costs. And what do you even mean? Trades don't need to be disclosed on any financial statements, it isn't required for private companies to even disclose basic financial statements to the public.
Price quoted does not necessarily mean last filled,does it?[25:43]it's just a quote,right?[25:58]
Blame the lag. It works for us gamers.
This is one topic I completely do not understand. Is there a stock market 101 for dummies to understand how to read the numbers and what to look for?
Sounds like a program change and needed to reboot......the virus was installed
Invest in stocks or in properties?? or in solar energy, or in business directly...
invest in all diversity is key
possibly missing a period between "all" and "diversity".
Did you mean this? "invest in all. diversity is key"
you can buy puts to protect from an event like this if you're that worried
Its funny how the model the guy made looks alot like a tree of life.. Life grows and shows in a pattern.. Cray cray
"It's one thing to be behind but it's another to have no idea you're behind"
Good stuff
Thank you! You might also like this one: ua-cam.com/video/ed2FWNWwE3I/v-deo.html
this is the time of the year, yeap !
can imagine how much day traders made/lost money during the flash crash.. while buying on recovery they could make money, which will allow them not to work 10-20 years in matter of seconds..
You can only make so much per trade/moment.
The algos went crazy, that’s what happens when everybody is using the same algo formulas
39:40 the deepest meaning of notime time
What is the name of the software being used at 7:00
I wonder how that guys who at the end says he doesn't have a cent invested in the stock market feels now as we're in the longest bull run! :) Buying in Jan 2000 was a mistake. So was selling after Sep/Oct 2008.