On the one-year anniversary of the “Flash Crash,” Cornell University finance professor Maureen O’Hara tells Reuters Insider she worked with researchers at Tudor Investment Corp. to devise a new formula, the VPIN, that identifies the risks liquidity providers face when trading with people with better information and how that may prevent flash crashes.

“… what we found is that this measure can predict such large price moves with about a 90% accuracy,” O’Hara said.

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