Friday, May 07, 2010

The Face of Information Warfare

When information warfare happens, it's possible the victims will not recognize it as "warfare." I was reminded of this yesterday during the market selloff, which may have been caused by an error in trading. I'm not saying that the market selloff was an information attack. Rather, what we saw yesterday (an example appears in the screen shot -- Proctor and Gamble down 32% in the blink of an eye) reminded me of what an information attack might look like.

The NASDAQ is "recovering" by cancelling trades. However, how sustainable is that incident response? Are those who placed trades going to accept that response? In the future, what happens when traders can't trust what their systems display?

I'm looking forward to seeing the outputs of any investigation into this incident.

2 comments:

gih said...

That's a big loose ever they experienced.

Anonymous said...

Perhaps they should be "playing the market" and instead should be investing in the long term prosperity of a company, as I believe stock options were intended.