140 characters moved the market. Big deal
While the market reacted swiftly to the false tweet posted by the hacked AP account on April 23,
many comments on the market’s reaction to the event were just as swift and premature. There
appears to be confusion between the use of headline news within automated trading and anoverestimation of the use of machine-readable news. On April 25, TABB Group measured the
opinions on the event. We received 234 responses. The highlightsinclude:
Market structure confidence has weakened slightly since August 2012, but within one key group
the buy side
there has been an uptick (see pages 3 and 4).
When measuring the impact of the Hash Crash, two- thirds of participants say it has had noimpact on their market structure confidence (see page 5).
Nearly half of participants ignore social media in their investment decisions (see page 6).
Most respondents believe automated news and social media algorithms were most directly andnegatively impacted by the Hash Crash (see page 9).
Adam Sussman / Valerie Bogard