Wall Street is moving to Atlanta.
The NYSE has sold itself to the global Energy and Risk Management – the Inter Continental Exchange (ICE)- the folks who brought you Credit Default Swaps (traded in London) and Global Warming CO2 futures contracts.
This will bring to an end any residue of a trading floor in New York. ICE is an electronic trading platform – my involvement in Chicago in 1989/1991 was building an electronic trading system for the Chicago Board of Trade – it was not something the floor traders wanted. The CBOT no longer exists.
HFT, which is High Frequency Trading, is done by extremely fast computers making bids and offers on stocks and/or securities in nanoseconds. It became prevalent in the markets within the past 5-10 years and was responsible for the May 6, 2010 Flash Crash in the DOW when it dropped 560 points in about 4 minutes and an estimated $10T was lost in a 15 minute period. Other flash crashes have occurred
Several of the largest banks in the world, as well as other criminals, have devised enterprising methods to fleece the markets. Goldman Sachs is proud to lay claim to its profits, which are derived in part by HFT and front-running its customer’s trades.
The scheme behind HFT is to simply swamp the system with bids and offers, but because they are made and withdrawn so quickly the vast majority of their bids and offers are made with no intention to execute a trade. The criminal banking system uses very fast computers to ‘flash’ an overwhelming number of bids and offers into the system with deliberate intention to affect the price of a stock or some other security. The effect is to overload the system and produce ‘mini flash crashes’ and/or ‘mini flash rallies’. Here is a link to Nanex showing how the stock ASIA traded from $15.72 to $12.60 in one second and then quickly recovered. http://nanex.net/StrangeDays/07142011.html
Is there any law that regulates this sort of criminal activity? Section 9 of the Securities Act of 1934 makes it unlawful for any person to create a false and misleading appearance of trade, or to influence a price, or to induce the purchase or sale of securities by others.
So, what is the SEC doing to curb this type of criminal behavior? They have been formally notified many times, by many different parties, but nothing has been done to prosecute the offenders or curb the illegal activity.
We are apparently being ruled by two different sets of laws. The more a person delves into the matrix the more apparent it becomes that there is a duality in the operation of government, banking and most other enterprises.
I thought the guys in Atlanta that bought NYSE were a company that sold Dirigibles ?
yeah those high frequency traders are the only ones making money on that market now. I should get my 401K while the gettin is good. almost 12/22/12 and still here. We’re good. Ammo is about sold out everywhere I read.
John Galt signed off his radio program tonight, says he going Galt. No more broadcast unless Pirate radio.
bummer
Parrott
There is a lot of great documentation in the archives of http://www.zerohedge.com – it is the other blog that I read almost every day.
ZeroHedge is a decent source of info. I spend some time at gizadeathstar dot com run by Dr. Joesph P. Ferrell. He is a very well educated guy and has done some deep research into what is really going on. While I do not agree with every opinion he holds, he has discovered some very surprising facts that cover a wide scope of subjects. He has strung together a lot of this research into a story that is still unfolding. The best way to start off is to go to http://www.thebyteshow.com/JosephPFarrell.html – scroll way down the page to “Dirty Secrets ~ Nazi International”. There are 9 – 1.5 hrs segments, no commercials.