It was hypothesis and later proven incorrect. Some even argue algos helped minimize the turmoil.
In the pre-automated era I can see circuit breakers working in a constructive way for the markets. These days, with trading being mostly automated and algorithmic, to me it feels more like a bureaucratic tool to give government institutions some time to play the markets.
In the pre-automated era I can see circuit breakers working in a constructive way for the markets. These days, with trading being mostly automated and algorithmic, to me it feels more like a bureaucratic tool to give government institutions some time to play the markets.