Citi's London Trading Desk Behind European 'Flash Crash'

The video discusses a flash crash in European markets caused by a significant transaction error. The error, linked to computerized trading, led to an 8% drop in the OMX index, causing over 300 billion in losses. Despite the initial decline being reduced to 2% by the end of trading, the incident raised concerns about monetary and reputational damage to the involved parties. The NASDAQ decided not to cancel any trades, and City took responsibility for the error, indicating further discussions on the losses are expected.

What is a key factor that can exacerbate flash crashes?

• Investor sentiment

• Manual trading

• Computerized trading

• Market regulations

What was the initial percentage drop in the OMX due to the transaction error?

• 5%

• 10%

• 8%

• 2%

Which markets were affected by the OMX drop?

• Paris to Warsaw

• New York to London

• Only Stockholm

• Tokyo to Sydney

What was the financial impact at the lowest point of the market drop?

• 100 billion

• 200 billion

• 300 billion

• 400 billion

What was NASDAQ's response to the trades made during the incident?

• Re-evaluate trades

• Not cancel any trades

• Cancel some trades

• Cancel all trades