Tags: Apple | Stock | plunge | Bats

Apple Stock Drop Mars Bats' Global IPO

Friday, 23 March 2012 12:18 PM

Shares in technology bellwether Apple Inc. fell 9 percent on single trade Friday, which prompted a circuit breaker to halt its trading due to volatility rules.

A sole trade of 100 shares at a price of $542.80 hit the tape at 10:57 came from the BATS Exchange, CNBC reports.

The previous trade, just seconds earlier, came in at $598.26, which put the sudden drop at a little over 9 percent.

Trading shortly resumed afterwards.

"It looks like a fat finger mistake,” says Joe Terranova, chief market strategist for Virtus Investment Partners, according to CNBC.

Bats Global Markets, a six-year-old equity exchange that went public on the same day of the crash, attributed a system error.

"It’s a pretty inauspicious start," Sam Ginzburg, a partner and head of capital markets at First New York Securities LLC, a New York-based proprietary trading firm, tells Bloomberg.

"It’s not wildly unusual for exchanges to have system issues, but because they happen to go public today it makes it more newsworthy," Mike Shea, a managing partner at Direct Access Partners LLC in New York, also tells Bloomberg.

The event evoked memories of the famous Flash Crash of May 6, 2010, when the Dow Jones Industrial Average plunged 900 points and restored itself in a matter of minutes.

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Friday, 23 March 2012 12:18 PM
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