Latin American markets were hit by 2010 US ‘flash crash’, DNB paper finds
Fall was driven by equities markets’ interdependence, not contagion, researcher argues
The US “flash crash” of May 2010 caused similar falls in equities in Latin America, a working paper published by the Netherlands Bank finds.
In The international spillovers of the 2010 US flash crash, David-Jan Jansen examines “minute-by-minute data” for 148 firms trading equities on exchanges in Argentina, Brazil, Chile and Mexico.
The author finds that there were price falls “of up to 10% within minutes after the US crash” on May 6 that year. In addition, “market volatility increased, bid
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