Dr. Thomas McInish Receives The Financial Review's Outstanding Publication Award

For release:  May 22, 2015

Dr. Thomas McInish, professor of the Department of Finance, Insurance, and Real Estate and the holder of the Chair of Excellence, received the 2014 Outstanding Publication Award honored by The Financial Review. Dr. McInish won this award for his article, "The Flash Crash: Trading Aggressiveness, Liquidity Supply, and the Impact of Intermarket Sweep Orders." The article was coauthored with Drs. James Upson, University of Texas at El Paso, and Dr. Robert A. Wood, Professor Emeritus, University of Memphis.

The article studied the short period of high stock market volatility on May 6, 2010 that came to be called the Flash Crash. During this time, some stock prices declined to $0.01 while others increased to $100,000. It examined a type of order called the Intermarket Sweep Order (ISO) before, on, and after May 6. The researchers found that ISO use was substantially higher on May 6. For the stock prices that fell the most, over 65% of the sell volume came from ISOs. During the price recovery period for those stocks, about 53% of the buy volume came from ISOs. This study showed that the unusual behavior of ISOs contributed to the sudden drop and recovery of the market.

The Outstanding Publication Award was determined and voted on by the Eastern Finance Association (EFA), the official association of The Financial Review. The Financial Review publishes original, empirical, theoretical, and methodological research providing insights into all areas of financial economics. Dr. McInish will receive a small monetary gift as well as a plaque to recognize his award.