The current, predominantly of HFT-machines (70% trade share) driven rally MMN is a ride on a razor blade, especially the deteriorating macro fundamentals are ignored. The higher it climbs, the greater the discrepancy between price and fair valuation.

How to resolve such discrepancies extreme increases, we saw in the summer of 2008 for oil and raw materials. In oil, there were - admittedly - no flash crash. That's when futures trading with "open outcry" hardly possible (needs "electronic commerce"). Nevertheless, oil fell because of over-valuation of 147 dollars in the summer of 2008 to $ 30 in winter. That's a decline of almost 80% - driven by the massive lifting of most oil-Lung gamers.

If the lie is now gambled high equity indices (only 15% in the last six weeks) a U-turn, should funds on electronic futures trading (Globex) once again carry out hedging activities. The resulting downward movement could potentiate again because of the HFT-trading.

Cause of the crash on 6 Flash May 2010 was a single medium-sized fund, which provided protection with ES futures. What would happen if several large funds that have HFT computer, carry out such futures hedges?

The possibilities are for such futures hedges it still. Trading curbs prevent any reversal of slow, but they only.