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Beware the mini flash crash

Circuit-breakers designed to prevent erratic falls in stocks are failing to stop flash crashes

Circuit-breakers were supposed to stop ‘flash crashes’ in shares, but they are failing to do their job. That could have worrying implications for the stock market, says new research.

Regulators have been fretting over the 'flash crash' phenomena ever since May 6 2010 when confusion in the US markets caused the Dow Jones Industrial Average index to plummet 1,000 basis points in around 20 minutes.

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