Prima-Facie Evidence The NBBO Is Broken Explains Why Senator Kaufman Is Getting Very Angry With A Corrupt SEC

Tyler Durden's picture

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unwashedmass's picture

 

good for kaufman. of course, he shouldn't take any trips in small planes for the next year or two.

Quinvarius's picture

I have noticed bad things tend to happen to people in the ethanol or electric car business when they fly small planes.

dan10400's picture

Don't dwell too much on oil spills as well if you plan to spend some time in your hot tub...

Phil's picture

TK is a lame duck in Nov.

SEC will not even read the letter

Jean Valjean's picture

I'm about to bid on an ebay auction.  Do you think the same thing is happening there?

Careless Whisper's picture

u prolly o.k. there, the sec isn't involved. they protected bernie madoff for ten years.

http://www.digitaljournal.com/article/266642

 

Noah Vail's picture

Yes, the ebay system is rigged to keep forcing you to bid higher; the current high bid shown is usually fraudulent. Bid $1 dollar higher and it will tell you its already bid at that price.

Ragnar D's picture

The bid you see isn't fraudulent, it just isn't the high bid.  As with a live auction, ebay auctions are won by the 2nd highest bid.

That is, if you're willing to pay $100 for something and I'm willing to pay $200, we'll bid back and forth (75, 80, 85...) until we hit your max of $100.  After that I'll just bid one increment above that (101, 105, w/e) and you'll be out of the market.

ebay expedites this with autobidding.  We both put our maxes in, and it immediately takes the current "high" bid to the lowest it needs to be.  If the auction is at 50 your 100 will take it to 51.  Other bids above that will auto-bid you up to your limit of 100.  My limit of 200 will outbid anything up to that, stopping just above the next highest bid.

 

That's why your 100 will immediately get outbid at 101, and if you change your mind and put in 150 you'll immediately get outbid at 151.  You have to top what others are willing to pay (in this case 201) to keep the top bid.

RockyRacoon's picture

You'll have to forgive those who speak of things they have no experience in.  I've been an eBay seller since 1998, feedback 100%, sold over 23,000 items and have never had a documentable incident of so-called eBay fraud.  I've had 3 bad checks, 2 of which were made good.  Sure, there are non-payers but they are easily dispatched.  I have a lot of beefs with eBay but fraud is not one of them.  I've used Paypal since the days it was free with not one glitch, none.  Those who tout it don't know the actual conditions.  So, what's new about people blabbing about stuff they don't understand?

Pondmaster's picture

The best way around bidder and eBay madness is to not start the bidding process at all , Driving prices too high . I use AuctionSniper.com . I place the bid for what I am willing to pay , and they take care of the rest . Its like a stock buy till cancelled order . Exactly , except , you may get out bought at the end of auction . But you avoid the emotion of watching the price move towards end of auction , and fear of not "getting what you want , when you want it" . My bid time is set 5 seconds before close . and my price bid is always , "$ xx.60 " . I win more than I lose . always 

RockyRacoon's picture

Another smart eBay user.  I use esnipe.com and set my bid to post 7 seconds before closing.  If/when eBay gets smart and does an automatic extension of the auctions when bids are being posted near the end, these auto-post sites will be in big trouble.  Placing bids manually is suicide.

Ragnar D's picture

These still only work if you're higher than everyone else's high bid.  If the bid is 50 but someone else's max auto-bid is 100, your last minute 55 bid will immediately be topped by theirs, no matter how close to the end you are.

The advantage you're getting is that someone can't reconsider his high bid since the auction's over.

 

GunBroker, btw, already has the auction extension.  I believe it's an automatic 15 minutes tacked on after any new bid.

Kaiser Sousa's picture

Tyler -

hey man i posted an exert from 1 of ur articles today as i do often n attempts to bring some gospel to the knuckleheaded masses.  i meant no disrespect if i violated copyright's man as i resect the work here.  but i thought u might find this amusing.  please tell if i should refrain from citing ZH n the futrue  as i will respect that...peace...

 

Hello KaiserSouza,

The comment below was deleted from the MarketWatch Community because it was a violation of copyright and/or our Guidelines.

http://community.marketwatch.com/faq#guidelines

Please do not copy-and-paste material found on another Web site.

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Regards,

MarketWatch-Admin

http://www.marketwatch.com/story/us-stocks-off-session-lows-bolstered-by...
"Behold - ur free, fair, and balanced markets...happy trading.....

"With the bulk of stock trading (over 70%) now executed by various algorithms, which in turn are programmed by 20 year old math Ph.D. who just happen to know nothing about P/E rations, debt leverage, interest coverage, PEG, balance sheets, and other such relics of an ancient fundamental-ist past, it is no surprise that momentum trading and a nearly 1.00 cross asset correlation is now the norm. What it also means is that HFT provides a permanent bid, as the computer algos are woefully incapable of "reading" between the lines of various press releases, and trade purely on keywords (a topic we have discussed previously), which we are confident the PR departments at major blue chip companies are all too aware of and have long-since reverse engineered. Yet the most notable consequence of the HFT perma bid is that it tends to provide a terrific "@#$%&!" receptacle for all stocks that institutions want to dispose of. To wit: anyone looking at yesterday's trading would think that everyone bought all stocks equally. Not so - as the attached chart from Lazard Capital Markets confirms, this was certainly not the case, and in fact block transactions, i.e., those initiated by large institutions, saw a major unwind of Consumer Durables, Materials and Retailing stocks, even as stupid computers were buying up everything. In essence, institutions are now selling into the HFT bid, which manages to pull up the NBBO far higher than it would be without such an algorithmic thrust. And since the price is higher, retail momo chasers end up following, and buying into a market in which the smart money is actively dumping positions. The sad conclusion is that this will result in such a massive bid-side positional imbalance one day, that HFTs will be unable to sell to each other, and the May 6 redux will occur all over again."

http://www.zerohedge.com/article/institutions-now-actively-selling-hft-p..."

KaiserSouza Aug 18, 2010 12:14 PM

whatever...Zero hedge  commentaries r not copywritten when from internal staff...
nice try - i meant lie....

MarketWatch-Admin Aug 18, 2010 12:30 PM

Shame they slap this on their Web site: copyright ©2009, 2010 zero hedge

In any event, moderators don't have the time to investigate every case of copy-and-paste to see if the originator allows the free dissemination of their property. We will yank copy-and-paste and we will yank accounts when it's clear that this rule is understood and being ignored.

KaiserSouza Aug 18, 2010 2:49 PM

"That said, you should link out to credible news sites. Comments with links to sites spouting hate, propaganda, conspiracies or promoting sales and services will be deleted."

1) u forgot 2 include propaganda, reporting devoid of insightful analysis, thorough investigation, and cogent commentary rooted n a clear understanding of all things financial, economic, and monetary...
but oh yeah, that would require deletion of the entire site let alone the nonsense ur "so called reporters" regurgitate on a daily basis to the clueless that unfortunately do not possess the sagacity to recognize ur propaganda for what it is...Propaganda.
2) i gave ZeroHedge its props n listing the link with the exert. so, as Gary Coleman would have said - "watch cha talking about MarketFarce"...

3) as i stated earlier...Whatever. spend more time encouraging ur "journalist's to undertake some real journalism and less time lecturing the likes of those who c thru this mainstream media disinformation hub.....

Tyler Durden's picture

While we certainly could not care less, perhaps you should follow Market Watch's advice and link only "to credible news sites. Comments with links to
sites spouting hate, propaganda, conspiracies or promoting sales and
services will be deleted
." In the future, to make sure the moderators at MarketWatch do not ban you, you should only link to theStreet, CNBC, and, of course, parent company WSJ, where critical financial articles have to be precleared by the Federal Reserve.

Kaiser Sousa's picture

Thanks for the response & guidance...

now, sarcasm off - right...

MichaelG's picture

+quadrillion x10 It is coming to something when Tyler Durden is your day's inspiration. I say 'your'; I mean 'my'. Let's hope it's just me.

DarkMath's picture

Kaiser Sousa,

CBS Market Watch doesn't want you posting Zero Hedge articles because if people found out how much better ZeroHedge is they would leave Market Watch en masse.

Kaiser Sousa's picture

D-Math:

nice thought but doubtful as there is a serious density defict on display over there....

_Biggs_'s picture

See if they'll keep a link to deepcapture.com over there.  I've had that removed from website comment sections on several occasions.  No replies, no explanations...my comments just evaporate into thin air like a fart in the wind.

JonNadler's picture

In any case they don't let anybody say anything bad about me in Marketwatch. Try quoting me (with proper citation) and poving am an arrogant fool and your account will be deleted. I rule MW baby.

Kayman's picture

Tyler

Is the whole system now corrupt ??  Is the nation entirely corrupt ?? Tell me it isn't so Joe...

NotApplicable's picture

How do you corrupt a nation when only people exist?

cougar_w's picture

Wait that made me think.

Smart ass. Now I need to go watch some Gilligan's Island reruns.

MichaelG's picture

Corrupt 10% of the people and make the others idiots? Dunno. That's what I'd do.

Amsterdammer's picture

Maybe Sen.Kaufman should get this letter to Gary

Gensler, at CFTC, under the Fin-Reg, also seemingly

able to 'intervene', they are also investigating

the 'flash'  and were lecturing the S.E.C these

days,'Joint Advisory committee on Emerging Regulatory

Issues', whatever that is...'HFT for Dummies'

 

 

 

 

septicshock's picture

I said it before and I will say it again.  Robbery should be punishable by hanging. 

jonnyy40's picture

You have more to worry about regarding markets than you seem to know. 

www.theterroristswhodestroyedthemarkets.com

Waterfallsparkles's picture

Shame is no one is listening to Kaufman.  Maybe because he will not run for his seat next election. So, SEC thinks just ignore him until he leaves and they can get someone else to turn their head.

Bankster T Cubed's picture

if all this wasn't being done primarily by the PDs/Fed as a critical component of their manipulation scheme, they'd have shut it down long ago.

The villians and the authorities/regulators are one.

Waterfallsparkles's picture

Unlet they ban HFT and consolidate all trades the Market will be broken.  Just a Machine to take everyones principal over time.

I do not believe that they will do anything as it is too profitable for the Big Banks.

KevinB's picture

I had to laugh yesterday on CNBC when they were talking about investors' lack of confidence in equities. They blamed this, that, and everything, but there wasn't word one about rigged markets. I think individual investors are smarter than Wall St. is giving them credit for; they know the game is rigged against them, and so they're moving their money into bonds and other instruments where the manipulation isn't so blatant.

Calculated_Risk's picture

Or at least to a market where the upside is better if the rigging fails.. Got PMs?!

Careless Whisper's picture

24 second delay? puhleeze, that's the oldest "sting" in the book.

http://movieclips.com/watch/the-sting-1973/this-is-a-class-joint/

 

Kaiser Sousa's picture

Tyler -

im being persecuted over at MarketWatch for divulging my ZeroHedge affiliation man..

can i get some back up????

Hello KaiserSouza,

Felling Censored:

The comment below was deleted from the MarketWatch Community because MW censorship complaints are off topic. We accept that some folks may be upset about having their comments deleted. That’s why we have a Censorship discussion group:

http://community.marketwatch.com/groups/censorship

Comments complaining about censorship and reposted deleted comments (yours or someone else’s) will be deleted -- as will most likely your account -- so tread lightly.

Check out the Guidelines for more tips on keeping your comments in Community:

http://community.marketwatch.com/faq#guidelines

Regards,

MarketWatch-Admin

 

response

 

KaiserSouza Aug 18, 2010 3:41 PM

Felling powerful???
sure seems that way..."tread lightly" or what? oh yeah, u'll censor me on this cite? to funny...
not even trippin off ya'll..
ur reputation precedes u...propagandist do what propagandist do...
so do what u feel u gottal...
shaking n boots over here..."tread lightly" hilarious....
tread lightly...that is to funny

 

 

PhotonJohn's picture

Their moderators can be Nazis some days. They got into a mode where they were going crazy on my comments. I rarely go there any more. Leave the ill-informed to their rosey markets.

Mercury's picture

Ha ha.  These Marketwatch guys are a little full of themselves with their "censorship" and "censorship discussion group" malarkey.  Do you get to wear a special badge for that?

Technically it's called editing fellas.

Kaiser Sousa's picture

guess i got junked cause someone was disinterested...all good just letting the community know about it..carry on...

anony's picture

M/Watch is some amateur's idea of what a financial blog should be.  Their headlines on any given day contradict one another, the best corresponders moved on a long time ago when they realized that the forum was driven by a cut and paste mentality from the contributors, editors and topic choosers.

Some of their writers are simply incompetent. It reads like a Wall Street Journal that someone like Rupert Murdoch might order it to be written, dumbing down a brand that was already dumbed down to a boring, uninspiring, white bread soporific to the establishment.

Being banned from the site is an honor to be cherished.

Caviar Emptor's picture

I was trading the flash crash. I can attest to all that Nanex describes. It was true and served to profit the thieves on Wall Street. I was long put options beginning at 1PM and into the crash. Needless to say my position was mighty, mighty lucrative. That is IF I could place cash in my winnings. My order was filled 22 minutes after the order entry time. It sat frozen while the exchanges played a game of routing and re-routing orders, each claiming they were overwhelmed, each failing to honor the NBBO. 

I was one of the few who pursued a grievance as far as it can be taken up: with the exchanges themselves and the SEC and can report that the green wall of silence was fully maintained. I did manage to get some partial satisfaction from my direct access broker after yelling for 2 days. Each of the exchanges acknowledged boldly that the order was clocked in, but they each just re-routed to the other. The final exchange waited 17 minutes and simply stated they were "overwhelmed". 

The game was this: things in the market are not what they seem. Exchanges can act in an arbitrary and capricious manner to simply not honor prices that are established through the laws of supply and demand. In other words, the laws of supply/demand can be suspended at any time, are subject to revision, opinion, bias and what I call "The Troll Rule": If you're a troll who controls a bridge, nobody gets across the bridge unless you fleece them. 

Gold is your only friend.

Markets crash and have gone nowhere for 12 years, treasuries don't keep up with the cost of living, real estate will be in the tank for a generation, bonds can blow up. It's gold.

Caviar Emptor's picture

I was trading the flash crash. I can attest to all that Nanex describes. It was true and served to profit the thieves on Wall Street. I was long put options beginning at 1PM and into the crash. Needless to say my position was mighty, mighty lucrative. That is IF I could cash in my winnings. My order was filled 22 minutes after the order entry time. It sat frozen while the exchanges played a game of routing and re-routing orders, each claiming they were overwhelmed, each failing to honor the NBBO. 

I was one of the few who pursued a grievance as far as it can be taken up: with the exchanges themselves and the SEC and can report that the green wall of silence was fully maintained. I did manage to get some partial satisfaction from my direct access broker after yelling for 2 days. Each of the exchanges acknowledged boldly that the order was clocked in, but they each just re-routed to the other. The final exchange waited 17 minutes and simply stated they were "overwhelmed". I still managed to make money. But I got ripped off.

The game was this: things in the market are not what they seem. Exchanges can act in an arbitrary and capricious manner to simply not honor prices that are established through the laws of supply and demand. In other words, the laws of supply/demand can be suspended at any time, are subject to revision, opinion, bias and what I call "The Troll Rule": If you're a troll who controls a bridge, nobody gets across the bridge unless you fleece them. Once they have your money, they are not fully obligated to give it back. Recourse is mighty, mighty thin and actually only theoretical.

Gold is your only friend.

Markets crash and have gone nowhere for 12 years, treasuries don't keep up with the cost of living, real estate will be in the tank for a generation, bonds can blow up. It's gold.

_Biggs_'s picture

You had me interersted until you started pumping gold.

RockyRacoon's picture

Kinda like meeting a great looking woman in a bar, you're getting along great, and then she quotes the Bible, eh?  What a drag.  That blind faith can be a boner buster.  Truth is that both gold and the girl put out like your high-school fantasies. 

Cognitive Dissonance's picture

Since when did you let your (non) religious beliefs get between you, your boner and mother natures parking garage? :>

RockyRacoon's picture

I was just funnin' with _Biggs_.  I try not to discount someone's views just because they like chocolate ice cream and I like vanilla.