In the olden days such surges came from spoofers, apparently not this time though..
Via the WSJ:
- Over the past two months, the volume of data generated by activity in CME's Eurodollar futures soared 10-fold
- The data surge … wasn't caused by an actual increase in trading. Instead, it mainly consisted of digital messages that showed changes to quotes to buy or sell Eurodollar futures
- Late last week, CME announced new penalties for firms that bombard its markets with too many messages.
And:
- The episode was caused by a standoff between two firms whose algorithms entered a loop, racing each other to be the market's biggest player
More at the article, here.