![]() On top of that, the growing reach of the media certainly amplified the effects and severity of the event. Other factors, such as a trade deficit in the United States, international tensions, and other geopolitical circumstances have also been named as causes. In contrast, today’s trading bots can move trillions of dollars of value within seconds of an unexpected news event. Naturally, these advancements also affected the velocity of large price moves. The shift to computerized trading enabled considerably faster trading activity with systems capable of placing thousands of orders in seconds. Throughout the 1980s, however, trading activity started to rely more heavily on computer software. The trading floor of the New York Stock Exchange (NYSE) in 1963, before the introduction of computerized trading systems. ![]() ![]() Before the 1980s, stock markets were typically noisy and crowded venues where traders exchanged assets directly on the trading floor of the exchange. Today, most trading activity is facilitated by computers, but this wasn’t always the case. The first was the introduction of computerized trading systems. However, several different factors came together that, in combination, created an atmosphere of panic and uncertainty. Interestingly, no major news event preceded the 1987 Black Monday. Generally, the cause of stock market crashes can’t be attributed to a single factor. But, it’s also used to refer to other severe market crashes. The term “Black Monday” typically refers to the crash in 1987. Most of the major indexes around the world had dropped between 20-30% by the end of the same month. The crash had a significant impact on global markets as well. Orders were left unfilled for hours, and large transfers of funds were delayed.Ī major crash like this one is naturally followed on the futures and options markets. The total trading volume on exchanges was so high that computers of the time were incapable of handling the sudden high load. To date, it’s one of the most infamous days in the history of stock markets. Performance of the Dow Jones Industrial Average around the time of Black Monday.īlack Monday is remembered as the beginning of a global stock market decline. The crash was preceded by two other large drops a week before. The Dow Jones Industrial Average (DJIA), an index that measures the US stock market performance, fell more than 22%. The numbers are similar when looking at combined spot and derivatives trading, where Binance saw a decline in market share to 42% from 60% while OKX's grew to 21% from 9%.Black Monday is the name used to describe a sudden and severe stock market crash that occurred on October 19th, 1987. In second place to Binance's 30% is Seychelles-based OKX, which has seen its market share grow to 8% in December from around 4% to start the year, according to CCData. chief Jonathan Farnell.ĭespite Binance’s decline in spot trading market share over the year, it still remains the largest cryptocurrency exchange by a wide margin. In addition to the exit of its CEO, the company also witnessed a large number of executive departures this year, including its Chief Strategy Officer Patrick Hillmann, Senior Director of Investigations Matthew Price and U.K. Department of Justice and Treasury Department. This came alongside separate settlements with the U.S. Commodity Futures Trading Commission lawsuit. The company in November and its now former CEO CZ agreed to pay nearly $3 billion to settle a U.S. CCData does note that Binance has begun to see a boost in monthly trading volumes since September even as its market share continued to slide. From January to September, the exchange’s monthly spot volumes declined by over 70% from $474 billion to $114 billion. Binance, the world’s largest cryptocurrency exchange by market volume, has seen its spot market share gradually decline over the year as the company faced an array of charges from regulators that eventually claimed its founder and CEO Changpeng "CZ" Zhao.Īccording to numbers provided by CCData, Binance's market share so far in December was just 30.1% versus 55% at the start of the year.
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