Flash Crash Systemic Event

This lecture delves into the systemic event known as the flash crash, exploring how it propagated from futures to stocks, options, and other commodities, causing market chaos. The instructor discusses the regulatory response, the importance of understanding latency in trading systems, and the impact of latency on market volatility. The lecture also touches on the role of high-frequency trading strategies, the measurement of latency, and the implications of introducing additional functionality into trading platforms.