“BLACK MONDAY” IN 2015
A second “Black Monday” was experienced in recent history on Monday, August 24 in 2015, which resulted in dangerous halt-and-go type trading, also causing very damaging results. The iShares Core S&P 500 ETF (ticker symbol: IVV) nose-dived more than 20%, and it’s reported that a great majority of the trading volume was done in ETF investments. The ultimate danger in this most recent market failure was the number of trading halts that had occurred, where trading had paused more than 1,200 times before finally being closed by the market circuit breakers. The problem that had arisen was undeterminable during the open.
Given the focus of this article is to highlight the foreign exchange market’s price activity in reaction to such market calamities, let’s first turn to circuit breakers, what are th…