With High Frequency Trading accidents occurring at an accelerating rate (Flash Crash, BATS IPO, Facebook IPO, Knight Capital, and endless single-name examples), it might be nice to see a timeline illustrating just how prevalent these bots have become.
Lucky for us, the good folks from NANEX, specifically Felix Salmon, put together an animated example — using real-time data.
The video that follows illustrates trading volume across all major exchanges (the exchange ID’s are color-coded in the legend on the upper right corner). The lower left corner shows the dates of the trades as they progress from reasonable volume in 2007 through being monkeyhammered by 2011.
It will take 30 or 40 seconds to get through all four years, but the wait will be rewarded as you see the explosion in volume as the dates approach the most recent.
Draw your own conclusion…
Here is the link: