Simons remembers getting a call from Peter Brown, a co-CEO of his firm, who told him the market was down 9 percent.
"It is?" Simons remembers asking.
"No, wait a minute," Brown replied. "It's only down 8 percent."
"It is?" Simons asked again.
"No, now it's only down 7 percent," Brown said.
In those few minutes, Simons said the market dropped quickly. It moved so fast, the billionaire hedge fund manager said he didn't have time to react to the first piece of news by the time he was getting the second. His firm, however, cancelled some orders. Thinking that their trades would be broken, many hedge funds stepped away from the market in those moments of tumult.
"We stepped out for one round of up-and-down trades, but we came back," said Simons, explaining that after the specialists stepped back, the market recovered. "It showed the system was pretty robust ... in spite of the exchanges making it more difficult by having conflicting rules."
Watch 'Fast Money' Monday at 5:00 PM EST for even more market insights with trading legend Jim Simons and check this post for additional updates, as well.
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Trader disclosure: On Sept. 13th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Pete Najarian owns (STI) calls; Pete Najarian owns (CNI) short calls; Pete Najarian owns (TCK) short calls; Pete Najarian owns (SCCO) calls; Pete Najarian owns (AKAM) call Spread; Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST); Cortes is short (XRT); Cortes is short Gold; Karabell owns (C), (GS), (FCX), (BRCM)
For Zach Karabell:
River Twice owns (GS)
River Twice is short (SMH)
For Steve Grasso:
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)