XLF Sets World Record In Quote Stuffing With 23.3 Quotes Per Millisecond

Tyler Durden's picture

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LongSoupLine's picture

Rome just had some more fuel dumped on it.

TheGreatPonzi's picture

Faster computers, faster networks each day: let's face it guys. Human traders are dead forever.

tewkatz's picture

In other news, Fujitsu now shipping 10 petaflop supercomputers based on Sparc 64 VIIIfx processors... :)

trav7777's picture

Impressive...anyone who thinks Japan isn't a de facto atomic weapons state with this type of technology at their disposal is a fooool

Bose Einstein OracIe's picture

Looks like it occurred at a key point on the chart too. I think most of the manipulation out there is related to this kind of stunt. It's not hard to create technical buy signals at certain points on charts. 

If the net result of this churn was raising the price a few cents just after double-bottoming on a moving average as this did, thus creating a moving average crossover and subsequent rally...mission accomplished.

My question is was it this churn that produced the rally that followed via technical buying on a short term period? Looks like it could be.

palmereldritch's picture

Wow.  I gotta say that there are some serious POS Fascist, censorious, bloodsucking, penurious fuckwads in the world when a link to a 15 second clip of the original Frankenstein movie portraying the moment when Dr. Frankenstein breathes life into his creature is pulled because of copyright infringement?!!

Indulge my egocentric perspective for a moment but this clip had no ostensible activity on it for more than a year before I linked to this (based on the comments on youtube) and was for all intents and purposes idle.  It had a very low view count.

Tyler, you have some serious communist parasites trolling these threads dude.

You know...sometimes it's the little things that piss you off the most.  [Note to self: study more on HFT]

 

Oh wait a minute...here it is again....

http://www.youtube.com/watch?v=xos2MnVxe-c

It's Alive!!!

 

trav7777's picture

Tyler...dude..haven't we been over this before???

The culprit is ALREADY KNOWN.  WADDELL & REED, gfdit!

GET OVER IT ALREADY

Cistercian's picture

Just providing needed liquidity.....for their pockets!!!!!!!!!!!!!

system failure's picture

Mr. Obvious would ask just what is going on with the banks stock etf maings? Maybe I should be buying before everyone else. But hey, wait a minute, maybe I should be selling cuz this is obvious overload and to rich to handle right now. With all the good news on forclosuregate, I would figure Mr. Obvious would be okay with at least 50,000 quotes per second before Mr. Obvious buys.  

FischerBlack's picture

Since this is almost certainly algos trying to trip-up other algos, nobody will ever know the reason for it. Personally, I've been running an HFT system from the 3rd floor men's room at the NYSE, second stall. I can stuff a trillion IBM quotes in Planck time while dropping a deuce. There's plenty of room at the bottom, boys and girls.

frankTHE COIN's picture

pass some toilet paper into my stall.

theprofromdover's picture

Old joke-

Says Mrs Dunn of Dublin -if you are going to the Big Apple, look up my son -little Neilly. He never calls.

Where does he live?

No 3-4 oi think. Yes, that's it

???

A week later, on 3rd floor men's room NYSE, oi'm using the facilities, but all the cubicles are locked.

I tap on No 4- Are you Nearly Done?

Oi am dat -but there's no paper!

You should be ashamed of yerself.That's a poor excuse not to be writing yer poor mother.

samsara's picture

 

"...just what the actual intention of this world record in churn was? ..."

 

Again,  Imagine these are individual 'Test Runs'.   Different routines on different markets using different techniques. 

Imagine once they field test them all, at particular time,   a coordinated blitz of all markets.   FX etc.

 

 

fuu's picture

I think you mentioned this last week and I have been thinking about it a lot since then. Certainly nightmare material.

system failure's picture

Wait a minute, JPM has switched from Silver manipulation to XLF manipulation. Now we can sue them for this too.

Mad Max's picture

So, just to make sure I really understand what's going on here - a large pseudofinancial industry, "high frequency trading," has been created on the basis of using techniques that are both obvious and blatantly illegal under clearly settled federal law?

Do I have that right?

Banana nana (republic) no nana nana (republic) etc.

A Clear thinker's picture

As I often think about things...

"The only winning move is not to play".

Cistercian's picture

 No one beats the Theive-o-matic.

 

  No one.

moofph's picture

...that's almost as fast as those robo signers.

putbuyer's picture

I lost 3 cents to them. Fuckers

Conrad Murray's picture

For those whose spirits aren't completely broken and feel like doing something:

http://www.sec.gov/complaint/selectconduct.shtml
http://www.congress.org/  <---- Use the "Find your lawmakers" search box ont he right side of the page.

LeBalance's picture

Churn, Baby, Churn!

Market Inferno!

poor fella's picture

Uh, yeahhhhhhhh, we had a little coffee accident here....    sorry about that, no harm no foul?   xoxo

The Axe's picture

Just broken.and no one cares....

StychoKiller's picture

"Bots Gone Wild!  New New York unbolted.  What if you could travel the city and find the hottest robots just waiting to show you how wild they can get?  Catch the insane action when our cameras find the hottest real college robots doing things they never taught you at Mom's Robot Factory!" -- From a Futurama poster

fiftybagger's picture

Ever read the message boards?  Sometimes informative because a lot of guys like to discuss their book, gives you an idea what people are thinking.  Know what this board tells me?  NO ONE OWNS THIS SH*TE BUT COMPUTERS!!

 

Now, sell all your paper, buy physical, drain all but the last couple thousand and fill the coffee cans with cash, get some popcorn, and enjoy the show.

 

IT'S OVER PEOPLE!

 

http://messages.finance.yahoo.com/mb/XLF

alleyb's picture

on 10/26 the wire services reported:

==============

WASHINGTON (Dow Jones)--Federal futures regulators will begin seeking comments from the public on how it should develop rules to deal with disruptive trading and whether those rules should specifically address automated trading programs similar to the one used on May 6, the day of the so-called flash crash.

The Commodity Futures Trading Commission voted 5-0 Tuesday to publish a lengthy list of questions on disruptive trading practices and how to address them. The agency plans to follow up with a public roundtable on the subject Dec. 2.

The Dodd-Frank financial law gave the CFTC new powers, which go into effect next year, to police certain disruptive trading practices without the need for additional rule-making. That gives the CFTC the power to target practices like violating bids or offers, intentionally or recklessly disregarding the orderly execution of trades in a closing period, and spoofing, or intentionally cancelling orders before they can be executed

==============

Note to ZeroHedge Pls: make sure your article is made available to the CFTC etc

Bear's picture

I lost $11,000 in about 3 minutes on 5/6 ... filed a complaint with CFTC, and never heard from them again ... public input will fall on real deaf ears:

See No Evil

Hear No Evil

Become Evil by not hearing or seeing

trav7777's picture

but...but...that guy who worked on wall street told me that this type of practice can't happen!!!!11

right here on ZH, he said that HFT was just trying to do daytrader momo trades that just don't last very long

Azannoth's picture

Moore's Law at work

hedgeless_horseman's picture

hedgeless_horseman's corollary to Moore's Law is the number of bids that can be placed inexpensively on a security will double approximately every 6 months.

anony's picture

Tortoise vs hare.

Aesop may have had a point.

All I know is my Apple, MO, BMY and PFE, while subject to a billion trades each this past year, are worth significantly more than I paid for them, simply by ignoring the millisecond moves and all the controversy surrounding HFT.

Isolated instances all. Not to say that it's right just that for INVESTORS, it's irrelevant.

Buy and hold is baaaaacckkkk!

Coldfire's picture

Mary Schapiro needs to be fitted for size 36 shoes and a red rubber nose.

firstdivision's picture

Where has Kat been?  She's the one that says that this type of thing is needed in the markets to provide liquidity and compress margins. 

threefingerscam's picture

HFT programmer at keyboard "oops. I thought I was logged on to the test system."

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