Program Trading Activity Down Sharply: Program trading...
From Times Staff and Wire Reports
Program Trading Activity Down Sharply: Program trading activity dropped sharply in the first two weeks of November after an outcry over the controversial strategy, which has been blamed for increasing market volatility, the New York Stock Exchange reported. A steep decline in index arbitrage, the main form of computerized program trading, reflected an exodus by large brokerages after the strategy was blamed by some for worsening a stock market drop on Oct. 13. Index arbitrage accounted for 38.7% of program trades from Nov. 6-10 and 25.7% from Nov. 13-17, down from 53.8% in October, the NYSE said.
