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Dear SEC, This Is HFT "Cheating" At Its Most Obvious. Regards, Everyone Else

Tyler Durden's picture


While prosecuting the wrongdoers is clearly not part of the new normal (see Sokol et al.), what Nanex found this morning beggars belief - both in its method of manipulation and clarity that our regulators are clueless. As they note, the high frequency traders (HFT) are at it again. Contorting the spirit of the rules, because those who wrote the rules aren't technically savvy. On January 4, 2013, we found another instance of HFT morphing their manipulative and illegal quote stuffing strategy in an effort to fly under the radar. Why they don't just stop this manipulative practice altogether tells us a few things. First, this isn't some coding error, this is sophisticated cheating. And second, because they are spending valuable programming time on this strategy, there must be some real economic advantage. Which mean a disadvantage to everyone trading against them.


Via Nanex, Seconds In a Microsecond World,

The Strategy

Each exchange has been setting limits for the number of canceled orders allowed per second. We know that one exchange has a limit of 300 canceled orders per second per stock.. It's rare to find 300 or more canceled orders in one stock in any one second from that exchange. But you will find tens of thousands of seconds where a stock has 299 canceled orders.

In the charts below, we show a new strategy they have cooked up: send a blast of orders (all immediately canceled) over a very short period of time, 100 milliseconds (ms) in this case, and then silence for the balance of the second. They know that exchanges measure the number of canceled orders on a per second basis, so that blast of orders sent in 100ms will be diluted by another 900ms of silence. But networks operate on a much smaller time-scale, microseconds. A microsecond is a millionth of a second.

If an exchange sets a limit of 1000 canceled orders per second, these nefarious HFT will blast a 1000 orders in 100 milliseconds (ms), followed by silence for the balance of the second. The exchange will only see 1000 orders in a second, which is at the limit, so no problem. But the network that carries those orders to other participants won't see it that way.

A network that can carry 1000 orders in a second, can carry only 1 order per millisecond (1/1000th of a second) before latency (delay) occurs. Which means blasting 1000 orders in 100ms will begin overloading the network and causing delays after just the first 100 messages. Which means 900 messages will arrive late to other traders (competitors) computers. Which is the whole point of this high technology warfare.

1. GWR - Bids and Asks color coded by exchange and NBBO (gray shading)
Note the pattern of quote blasts followed by silence. What is this all about?

2. GWR - Trades color coded by exchange and NBBO (gray shading)


3. GWR - Bids and Asks color coded by exchange and NBBO (gray shading)


4. GWR - Bids and Asks color coded by exchange and NBBO (gray shading)
The blasts occur 1 second apart. This is to get around exchanges limiting HFT to X quotes per second. Networks operate on milliseconds.


5. GWR - Zooming out, showing Bids and Asks color coded by exchange and NBBO (gray shading)
The quote rate on a 1 second interval is somewhat modest. Spread out between 6 exchanges, means each exchange won't see a problem.


6. GWR - Zooming out, showing trades color coded by exchange and NBBO (gray shading)


7. GWR - Tick Chart


Nanex Research


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Fri, 01/04/2013 - 19:49 | 3124193 Almost Solvent
Almost Solvent's picture

SEC porn, it looks like dicksucking chix 

Fri, 01/04/2013 - 19:56 | 3124209 Stackers
Stackers's picture

1000 monkeys typing on 1000 bloomberg terminals for 1000 years ...........

Fri, 01/04/2013 - 20:07 | 3124235 Cdad
Cdad's picture

Actually, I believe it is one of two things...or maybe both.

A. It is how the HFT guys set short positions.  You and I...well, we have to deal the that pesky bid and ask.  If this is correct, both GWR and SHW should tank in the the near term, and terminate their declines with inverse such action.

B. The market is so absolutely devoid of participants anymore, all these guys really have in the hunt for a Greater Fool to take them out of longs [in this case] is...the dumbest, helmet wearing algorithm in the room...and this is how they sucker that program into committing financial suicide.

So isn't SEC porn.  What this is is massive theft...a type of crime that risks the integrity of the entire equity market.  So try to serious up for a moment if you can.


Fri, 01/04/2013 - 20:12 | 3124244 boogerbently
boogerbently's picture

....looks like there's fish along the bottom.

Fri, 01/04/2013 - 20:14 | 3124251 Enslavethechild...
EnslavethechildrenforBen's picture

I see Bernanke going down on Obama...

Fri, 01/04/2013 - 20:18 | 3124253 Michaelwiseguy
Michaelwiseguy's picture

The Octogenarians in Congress know their days are numbered by old age. They're all starting to drop dead like ugly old flies. We just have to keep up the offensive against their tyrannical legislation and wait them out till they drop dead like Inouye and Bird or just quit like Leiberman, Dodd, Frank, etc or be voted out of office by a miracle like Luger and Specter.

I have a quite few on my death watch list.

Fri, 01/04/2013 - 21:02 | 3124276 strannick
strannick's picture

Clueless/Corrupt Regulators?

Dont give the SEC all the credit...Meet the CFTC Commisioners.

Their names are Jill Sommers, Scott OMalia, Bart Chilton, Gary Gensler, Mark Wetjen.

Through either epic ineptitude (a generous appraisal) or most likely despicable corruption, these banker-enabling bureaucrats make the world a much worse place through the mispricing of commodities.

It wouldnt be too far of a stretch to say their malfeasance enables bankers to destroy the world through self-serving manipulative pricing of basically everything.

THey are the treasonous Redcoat/Benedict Arnolds of their day, betraying their office for lucre. Their complicity makes the corrupt world go round.


Fri, 01/04/2013 - 21:41 | 3124404 Enslavethechild...
EnslavethechildrenforBen's picture

Anyone that does not have the balls to pull out a gun and start shooting Redcoats should just shut the fuck up about being raped by them.

Fri, 01/04/2013 - 22:43 | 3124504 Michaelwiseguy
Michaelwiseguy's picture

Someone should make a video montage of all the consumer products that could be made in the USA, but are not.

Fri, 01/04/2013 - 23:05 | 3124532 Michaelwiseguy
Michaelwiseguy's picture

Any bets on how much the debt ceiling will be raised to? $18 trillion, $19 trillion?

Sat, 01/05/2013 - 00:40 | 3124665 chart_gazer
chart_gazer's picture

$20 trillion minimum

Sat, 01/05/2013 - 07:44 | 3124929 TwoShortPlanks
TwoShortPlanks's picture

I have no idea as to what the data is showing, and I couldn't care less. You don't have to be Einstein to realise that;
1. There are no criminal charges handed out to those who are doing what they are being told/allowed to do.
2. In light of, and following on from #1, the system is both expected to, and is intended to, implode, and to do so by looking accidental to the masses.

I'm not big on him, at all, but there's a reason why Pastor Lindsay Williams says his "elite friends have all moved to remote location", mainly to places very remote. This gives a strong signal that nobody knows a timeline, not even they.

They will collapse this system, whether you believe it or not is irrelevant to them. They want a New World Order and they will get it because they will never stop trying for it. They will eventually get it right.

An analogy: First Catch, First Graze, and Dangerous Space.
1. First Catch is the region between the weapon and where the munitions impacts upon the target.
2. First Graze is the region between the weapon and where the munitions impacts upon the ground.
3. Dangerous space is the region behind both the Catch and the Graze where there is a possibility that the munitions may hit you.

It is not just a matter of getting out of Dodge; you've got to get well clear of any knock-on effects when Dodge goes postal. This will be impossible however, to stay well clear of Catch and Graze would be a good start…Markets, Bonds, Cash, Stocks , Equities, Real Estate (other than a simple roof over your head).

That being said, I firmly believe that physical Gold WILL NOT hold a currency value when the lights go out in Europe and/or America. Gold will be hunted for, but not found readily. Only physical assets will be traded for physical Gold, nothing else.

So let the little bots do their thing and rape the markets, let all Central Banks debase, becasue if they do their job properly your Gold, will eventually go from physical, to mystical....and everyone will be running around speaking like Gollum.

Sat, 01/05/2013 - 07:55 | 3124938 TwoShortPlanks
TwoShortPlanks's picture

Everyone has this all upsidedown. It's not the Debt Ceiling that's the problem, they'll always jack the ceiling (what, they're goona vote no and get blamed for a collapse/recession/!), it's the Debt. Further, it's not strictly the debt, it's also the gap between Base Money and Bank Assets....which must be around $90 Trillion globally by now.

And how do you shrink that gap? monetize!

Sat, 01/05/2013 - 00:04 | 3124625 Doomer
Doomer's picture

Figuretively, of course.

Sat, 01/05/2013 - 01:41 | 3124723 Overfed
Overfed's picture

Not until you can see the whites of their eyes (Not before it is time. It is almost time)

Sat, 01/05/2013 - 11:26 | 3125118 YesitStrue
YesitStrue's picture

Commiting suicide is not a reasonable response to being raped. We must demand that the rapists are castrated.

Fri, 01/04/2013 - 23:23 | 3124567 WTFUD
WTFUD's picture

Big thumbs Up strannick!
Do i hear you correct? De taxpayer is paying to get fucked by dem! that's a " roasting " ain't it? That legal?

Sat, 01/05/2013 - 10:55 | 3125083 indygo55
indygo55's picture

Back in the days of Iraqi Freedom the Army made up a deck of cards witht the names and faces of the guys thery were hunting down. How about a deck of cards for this Financial Malfeasance Gang - Bernank as the Ace of Spades, The Timmay as the Queen of Hearts, and so on. Could include addresses, phone numbers, values,,,  It would give me focus.


Sat, 01/05/2013 - 16:53 | 3125663 DavidC
DavidC's picture

Already done, two or three years ago, I think it might have been WilliamBanzai7.


Fri, 01/04/2013 - 21:25 | 3124370 ShrNfr
ShrNfr's picture

Frank wants to come back from the dead to be Kerry's replacement as MA Senator. Sorry you are now wiping the puke off your screen, I really am.

Fri, 01/04/2013 - 23:14 | 3124552 Clowns on Acid
Clowns on Acid's picture

Barney "he made me bite the pillow " Frank, wants Kerry's seat....

Sat, 01/05/2013 - 00:16 | 3124641 MsCreant
MsCreant's picture

No, Barney likes em young and is a bottom if I ever saw one. 

Fri, 01/04/2013 - 20:33 | 3124283 DCFusor
DCFusor's picture

A guy who can just print money going down on a guy who is just a puppet?  You have that one backwards.

Fri, 01/04/2013 - 22:33 | 3124487 El Oregonian
El Oregonian's picture

No, I believe it's Bari, he loves to bow/go down on others... Keep your chin up and save your reputation Boneher. If you still can, fool...

Fri, 01/04/2013 - 20:47 | 3124311 candyman
candyman's picture

funny, I believe this pattern is called a hummingbird fishfinder

Sat, 01/05/2013 - 03:12 | 3124775 silverserfer
silverserfer's picture

thats funny all i see is a litle shake and bake!

Sat, 01/05/2013 - 10:49 | 3125075 SokPOTUS
SokPOTUS's picture

It really does look like a fish finder, doesn't it.  And yeah, bottom-feeders is right....

Fri, 01/04/2013 - 20:12 | 3124246 Xibalba
Xibalba's picture

new mafia

Fri, 01/04/2013 - 22:22 | 3124467 cynicalskeptic
cynicalskeptic's picture

The Mafia never made as much money as these guys do - and the mob guys had to worry about going to prison, getting shot and lots more..  

Fri, 01/04/2013 - 23:51 | 3124604 WTFUD
WTFUD's picture

Unless you look at it from say, this perspective CySc;
whilst we goons were fed on Al Ca Seltzer ( never a dry eye in my house when a baddy got it, especially, Jimmy C ); the Real Mob in da House were fingering / poking you and yer missus wit exotic instruments

Sat, 01/05/2013 - 01:41 | 3124725 Element
Element's picture

relax ... just a very fat-finger

Fri, 01/04/2013 - 23:24 | 3124568 John Bigboote
John Bigboote's picture

Any president remotely interested in cleaning up this corruption would contract businesses like Nanex and ZH to provide consulting on how to identify the fraud and perpetrators (they would seek the technical advice to fill the knowledge gap eluded to by Tyler).

Obviously, Obama is not doing this and neither is anyone else who has any influence or power in our bullshit government.

It's an easy thing, but they are not interested for it will cause the entire ponzi to collapse if the light is shined upon it.

This corruption will continue until physically knocking down our doors is a life risking event for them. I know we can't be expected to inconvenience our lives until it is pretty much too late but hopefully when the time comes we will learn from history. I will:

“And how we burned in the camps later, thinking: What would things have been like if every Security operative, when he went out at night to make an arrest, had been uncertain whether he would return alive and had to say good-bye to his family? Or if, during periods of mass arrests, as for example in Leningrad, when they arrested a quarter of the entire city, people had not simply sat there in their lairs, paling with terror at every bang of the downstairs door and at every step on the staircase, but had understood they had nothing to lose and had boldly set up in the downstairs hall an ambush of half a dozen people with axes, hammers, pokers, or whatever else was at hand?…The Organs would very quickly have suffered a shortage of officers and transport and, notwithstanding all of Stalin’s thirst, the cursed machine would have ground to a halt!”
–Aleksandr I. Solzhenitsyn, “The Gulag Archipelago”

Fri, 01/04/2013 - 20:30 | 3124277 Cdad
Cdad's picture

You know...I should clarify:

Nanex most certainly ROCKS!...but ZeroHedge RULES!

Fri, 01/04/2013 - 21:25 | 3124369 Dr Benway
Dr Benway's picture

I wish Nanex performed house calls. The Australian stockmarket is critically ill but in denial, poisoned by both hightech and lowtech means. It needs radical surgery or euthanasia.

Fri, 01/04/2013 - 21:40 | 3124399 Cdad
Cdad's picture

I'm pretty sure Nanex has gun...and would travel.

Fri, 01/04/2013 - 22:48 | 3124511 nanex
nanex's picture



We've analyzed markets in or provided research for









My response to adding Australia to the list?:


Send us a couple a plane tickets, or come and visit us in Chicago, and "she'll be apples!"

Sat, 01/05/2013 - 04:20 | 3124817 Archduke
Archduke's picture

kudos nanex. that's fantastic.

are the papers public? can we get them via FOI acts?


Also, I have to wonder if your recommendations were actually heeded or shelved?

for example, France's supposed EQT and HFT transaction tax is all bark and no bite.

are you at liberty to comment on this?


Sat, 01/05/2013 - 08:57 | 3124989 Zaydac
Zaydac's picture

"On November 11, 2011, by invitation of Her Majesty's Government, Nanex gave a presentation on the effects of High Frequency Trading at No. 10 Downing Street. Those in attendence included members of the Foresight team, prominent academics, the London Stock Exchange, members of the FSA, Treasury officials, and people from No. 10."

Over a year ago. No action... I'm not surprised. All vested interests there, not on your side or mine unfortunately.

Sat, 01/05/2013 - 09:43 | 3125013 francis_sawyer
francis_sawyer's picture

Isn't that a bit like 'Al Capone' getting a private seminar from Eliot Ness as to how the FBI does its business?...

Sat, 01/05/2013 - 22:23 | 3126312 mkkby
mkkby's picture

Well, if this article is anything like their presentation, no response is deserved.  All I see are blotches of color all over the place with no real explanation of what it means, followed by a conclusion which may or may not be supported.

I'd like to see Nanex be a better communicator.  Then we can complain that nobody does anything.

Sat, 01/05/2013 - 11:00 | 3125091 goldfish1
goldfish1's picture

Plenty of disinfo pricks on ZH.

Sat, 01/05/2013 - 17:13 | 3125734 Herd Redirectio...
Herd Redirection Committee's picture

I'd be more worried if we couldn't so easily identify them.  The real worry is that ZH itself sells (or has sold) out.

Fri, 01/04/2013 - 22:24 | 3124468 lasvegaspersona
lasvegaspersona's picture


why would chase rec 'overweight if they are going down? / sarc off

Sat, 01/05/2013 - 00:19 | 3124642 MsCreant
MsCreant's picture


"risks the integrity of the entire equity market"

No need to worry about that, it's gone. 

Sat, 01/05/2013 - 01:37 | 3124721 ToNYC
ToNYC's picture

Bids without Margin are fraudulent acts; math proves.

Sat, 01/05/2013 - 02:28 | 3124750 AgAu_man
AgAu_man's picture

Screw the SEC. Try '60 Minutes'. Anderson Cooper will tell you if it's straight or gay porn.

Sat, 01/05/2013 - 12:17 | 3125179 buckethead
buckethead's picture

I am among the ZH readers who have but a scant ability to decipher most of the technical analyses made here. Not necessarily a stupid person, but not literate in trading jargon, complex chart analysis, or even the most basic HFT concepts. (I do get that they can move markets with backing, speed and deception, but I don't see how any of that is illegal)


I would love to understand what the charts tell us, and how to read them. For many here, it is no more difficult than reading a book. To an obvious majority, it is over our heads. I won't try to cover my ignorance here, but I will read on in search of understanding in a language I can decipher. Others chime in with attempts at humor... often failing attempts to throw something against the wall to see if it sticks. We learn how we learn. (even when we get junked to oblivion)


Sat, 01/05/2013 - 17:21 | 3125758 Herd Redirectio...
Herd Redirection Committee's picture

They are trying to confuse both the market makers and the competition.  There are a number of algos out there competing with one another.   So to 'win' you have to be able to feed on the mistakes of the other algos, trick them into something stupid, if you will.  Delaying how quickly they receive quotes is one way, esp. when we are talking about algorithms operating on the millisecond level.  Mainly the quote stuffing is used (as far as I know) to flush out other algos, see if you can make them bite, so to speak.  Throwing out an empty quote, and instantly pulling it back out again, seeing if you can get the other algos to 'show their hand'.

Ultimately its crooked though because the entire market is algos, they provide quotes ONLY to cancel them, basically its high tech market manipulation, simple as that.

Sat, 01/05/2013 - 04:57 | 3124846 Western
Western's picture

Nope, the random walk theory collapses when you move to 3 dimensions.

Fri, 01/04/2013 - 20:22 | 3124266 negative rates
negative rates's picture

Unless their stategy backfires, then all is good!

Fri, 01/04/2013 - 21:30 | 3124382 SeattleBruce
SeattleBruce's picture

The problem is that financial crimes aren't sexy to enough people, and until that critical mass is reached, nothing, or not much, will happen.  Shoot $4T has evaporated since 2007 in the real estate markets, and real un and under employment is 20 to 25% in the US - and where is the outcry?  We need people convicted and a hue and cry for heads on a platter before anything will change.

Fri, 01/04/2013 - 21:33 | 3124387 Larry Dallas
Larry Dallas's picture

Anyone who has any money in the equities market deserves to lose their entire 401(k), IRA, etc.

No retail investor has any right to be in the equities market.

And yes, you've been lied to by your "financial advisor" who's been pocketing fees and loads each month.

You lose. Good day, Sir.



Sun, 01/06/2013 - 15:34 | 3127426 csmith
csmith's picture

Not at all. Any money manager who does anything other than use limit orders EXCLUSIVELY is fooling themselves, however.

Also, the solution to the problem laid out in this article is simple: REQUIRE that ALL ORDERS be sustained in the system for at least 10 seconds.

Never happen though.

Fri, 01/04/2013 - 22:59 | 3124525 ball-and-chain
ball-and-chain's picture

These are some major league criminals. 

And they all have degrees from the best universities in the world.

We need Batman.

Fri, 01/04/2013 - 19:50 | 3124197 PhD
PhD's picture

Given a “too big to fail”, everything else becomes “too small to matter”

Fri, 01/04/2013 - 22:45 | 3124506 kaiserhoff
kaiserhoff's picture

The Tyler pist ist.  He does his best work when he's pissed.  I'm still catching up, but he's on to something they can't hide.  This is fun.  Watch and learn youngin's.

Sat, 01/05/2013 - 02:41 | 3124755 AgAu_man
AgAu_man's picture

Let's hope the Tylers don't use a homicidal nanny or have kids who could go ballistic. And that a truck or small plane doesn't crash their party. Just saying.

Fri, 01/04/2013 - 19:51 | 3124198 HedgeAccordingly
HedgeAccordingly's picture

wild stuff. nice write up..

ghost exchange trailor -

Fri, 01/04/2013 - 19:51 | 3124199 Joebloinvestor
Joebloinvestor's picture

By setting rules, they just give HFT's guidlines.

Fri, 01/04/2013 - 22:58 | 3124523 Yes_Questions
Yes_Questions's picture



I thought that too.  Then again, what's the alternative?


Sat, 01/05/2013 - 00:37 | 3124661 e_goldstein
e_goldstein's picture

No HFTs.

Sat, 01/05/2013 - 00:43 | 3124670 Yes_Questions
Yes_Questions's picture




Fri, 01/04/2013 - 19:52 | 3124200 prains
prains's picture


Fri, 01/04/2013 - 19:52 | 3124201 SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

If the SEC would cut their porn time in half and read NANEX research in its place, maybe markets wouldn't be so fucked up.

Fri, 01/04/2013 - 19:54 | 3124207 Cdad
Cdad's picture

Might want to tap old Deutsche Bank on the should here.  They are probably the ones trying to ignite this thing, based on their very absurd upgrade of this stock very recently.  I know...hard to believe that DB could be at the heart of a market scam.  We'll all have to suspend our disbelief and faith both, for a moment or two, to get to the bottom of this one.

I saw this one happen real time this morning...and a very similar pattern on SHW, as well.  Both tickers glaring shorts, in my humble opinion.

But the markets are not a rigged game, and I'm sure folks are chomping at the bit to buy in to stocks...because Bernanke has decided it to be so.  And so long as this shit continues to happen, right there in the plain light of day [unlike the dark pool stuff...a seperate crime wave unto itself happening in dark rooms...only to post such things later...much later] long as it continues, there will be NO CAPITAL FORMATION...which is, of course, the heart of any healthy market.

But for some reason...our Fed banker in cheif seems to think capital formation is not necessary.  And that is truly frightening.



Fri, 01/04/2013 - 19:58 | 3124213 Clint Liquor
Clint Liquor's picture

Dear Zerohedge,

We don't give a fuck.



Fri, 01/04/2013 - 20:35 | 3124286 Fish Gone Bad
Fish Gone Bad's picture

Mr Clint Liquor, you cut and pasted most of the SEC email, the complete email should have been:

Dear Zerohedge,

We don't give a fuck.


Mike Hunt


There, fixed it for you.

Fri, 01/04/2013 - 23:10 | 3124543 Clowns on Acid
Clowns on Acid's picture

You mean Mike Chunt don't you?

Fri, 01/04/2013 - 20:01 | 3124219 Next to Arch Stanton
Next to Arch Stanton's picture

Ouch ZH, you hurt my head.  Pretty pictures though

Fri, 01/04/2013 - 20:03 | 3124225 DCon
DCon's picture

Dear Zerohedge,

I get paid the same if I watch porn all day, or track and punish this stuff.



Fri, 01/04/2013 - 20:12 | 3124243 HD
HD's picture

 Are you hiring? I have the essential skills needed - I'm know how to look busy and accomplish nothing and know where to find the best celebrity nude photos. Please contact ASAP.


Sat, 01/05/2013 - 04:50 | 3124842 verum quod lies
verum quod lies's picture

You know that's not true. First, they aren't hired if they think they might go after their overlords; and second, if they make the mistake of hiring someone with a shred of ethics and morality they are quietly pushed out if they go after them. That is just the nature of a captured regulator, and the world we find ourselves in today. What typically stops such things from happening are two things: (1) people (i.e., ethical people working for the firms that do the actual trading for actual humans), and/or (2) simple enforced rules like no f_ing market manipulation. We have some of #2 (albeit watered down and ignored) but completely lack #1 (and regulators that made it through any basic moral screening process). What's the definition of insanity again?


Fri, 01/04/2013 - 20:05 | 3124228 a growing concern
a growing concern's picture

Just pull a WTC #7 on this whole fucked up market and call it a day.

Sat, 01/05/2013 - 02:56 | 3124760 AgAu_man
AgAu_man's picture

Don't give them any ideas. They just might do it, and blame it on Iran. After that it is atom-fusing Shock & Awe time.

Fri, 01/04/2013 - 20:06 | 3124232 HD
HD's picture

There is no cop on the beat. The Fed, the politicians, the banks hold all the cards and the power - no one holds them accountable they are the top of the food chain. If TPTB do something the minions don't like they are free to riot - free tear gas and rubber bullets for all participants.


Fri, 01/04/2013 - 20:08 | 3124237 Cult of Criminality
Cult of Criminality's picture

Gives electronic warfare a whole new look.

Fri, 01/04/2013 - 21:10 | 3124341 tickhound
tickhound's picture

No kidding.  If only they used it for problem SOLVING.

Fri, 01/04/2013 - 20:21 | 3124264 Jliax
Jliax's picture

Can someone explain to me why they need to cancel and requote so fast, is that because related markets move that fast as well? It seems to me they are now loosing 90% of all opportunities within each second.

Fri, 01/04/2013 - 20:27 | 3124275 inkarri9
inkarri9's picture

The old bait and switch trick. 

Fri, 01/04/2013 - 20:42 | 3124299 alfred b.
alfred b.'s picture


     ....and just think all the while, I thought it was the 'carrot and stick trick':   think I'll need to



Fri, 01/04/2013 - 21:11 | 3124345 Water Is Wet
Water Is Wet's picture

The exchanges are basically admitting they don't care about the rules when they set a limit of 300 cancelled orders per second.  The law is, roughly, that you are only allowed to place orders you intend on honoring.  This 300 times per second shit is ridiculous.  If anyone wanted to fix the problem, make all orders stand for 5 seconds.

Fri, 01/04/2013 - 23:17 | 3124556 farooq902
farooq902's picture

agreed but make it a ratio of executed orders to orders entered then charge a fee if the ratio is violated.

Sat, 01/05/2013 - 11:06 | 3125097 SokPOTUS
SokPOTUS's picture

I cancelled all my orders about a year-and-a-half ago.

I do No Frequency Trading now.


"Hi.  My name is SokPOTUS, and I stopped trading a year-and-a-half ago."

Fri, 01/04/2013 - 22:56 | 3124521 palmereldritch
palmereldritch's picture

HFT mind control.

Manchurnian Candidates

Fri, 01/04/2013 - 23:39 | 3124591 michael_engineer
michael_engineer's picture

Obviously their algorithm had already decided there was no value for it in that second but was trying to manipulate for future seconds.

Sat, 01/05/2013 - 10:05 | 3125036 blindman
blindman's picture

i think they call it "market making"
with a "god" complex? extreme high
functioning stealing and wrath at a
distance and faceless, puts the drone
weapon to shame it it's limited capacity
for control and destruction. apparently
the experts think it is a good and noble
thing and offer honors and degrees in its
furtherance and development. all good servants
of the uncertain but promising future of
arbitrage, gaming, gambling derived from
virtual illusions at the speed of light.
we may have lost the context for the content?
that must be it.
George Carlin - advertising and bull shit

Fri, 01/04/2013 - 20:26 | 3124270 alfred b.
alfred b.'s picture


  Well of course they tcheat,  HFT stands for 'HIGH FREQUENCY TCHEATING'.....there's no controversy about that: don't know what the big fuss is about...sarc!       Must be the London spelling.



Fri, 01/04/2013 - 20:37 | 3124290 logicalman
logicalman's picture

I think 'those who are writing the rules' are TOTALLY savvy.

They are writing the rules to suit themselves and their friends/criminal associates.

Fri, 01/04/2013 - 20:38 | 3124292 Yen Cross
Yen Cross's picture

 I've seen that algo [formation] before.  It's called a "Super Massive Blackhole" !

Fri, 01/04/2013 - 20:39 | 3124295 Banksters
Banksters's picture

SEC= Securing Everything for CROOKS

Fri, 01/04/2013 - 20:43 | 3124298 Fish Gone Bad
Fish Gone Bad's picture

The GWR tick chart looks like something that stares out at me from the closet at night.  So far nothing bad has happened, so we both must be ok at least for now.

Fri, 01/04/2013 - 20:44 | 3124302 Wanton1
Wanton1's picture

The SEC could stop HFT immediately:


Suspend licences for all dual-citizen traders.

Fri, 01/04/2013 - 21:10 | 3124344 nobodyimportant
nobodyimportant's picture

Right on!

Sat, 01/05/2013 - 03:14 | 3124778 AgAu_man
AgAu_man's picture

Those damn NAFTA traders! I knew what they were doing wasn't Kosher. Should leave HFT to Independent Daily Forces!

Sat, 01/05/2013 - 04:48 | 3124841 Archduke
Archduke's picture

huh?  pray tell, what does this have to do with nationality?

do you have acess to information the rest of us don't?


Note that MTFs are European, so that's where there are

the most arbitrage opportunities, not in dull US markets,

which are just only playing catch-up.  Now if some gun-ho

American banks and funds play in Europe and get burnt,

well, they shouldn't be such sore losers.  Of course cheating

is bad, anywhere.  But you'll note that the European majors

were on the list of Nanex consultations and the US was not,

so you have to wonder if the Fed/SEC really give a damn.


Fri, 01/04/2013 - 21:13 | 3124331 Say What Again
Say What Again's picture

I think there may have been some funny business occuring on both 1/2 & 1/3.

First, note the large gap on open on 1/2/2013.

On the close of 1/2/2013 there was significant resistance at $80 for the last 5 minutes of the regular session.  In what appears to be the last trade of the day (1/2) 49,300 shares went off at $80.00!!!    Total volume for the day was 519,670.

Then, on 1/3 there was similar resistance at $80 for most of the morning.  GWR would trade down to $79.30 but NEVER traded above $80 until mid-day when 300 shares traded at $80.07.  After that it drifted down for the remainder of the session.    Total volume was 258,249.

Today (1/4/2013) there was a strange open at $83.91 -- and then the quote stuffing began and drove GWR down ~$79.70.  But here is where it gets interesting.  The VWAP for today was $80.04!!!!

I think that their "clean-up" order crossed at 11:38 when a single trade went off for ~42,000 shares at ~$79.63.

Enjoy your weekend.


Sat, 01/05/2013 - 04:51 | 3124844 Archduke
Archduke's picture

it's quite normal to get huge volumes at opening or closing auction.

this is especially true for vwaps that wait to catch up in auction.

Fri, 01/04/2013 - 21:01 | 3124332 OldE_Ant
OldE_Ant's picture

"A network that can carry 1000 orders in a second, can carry only 1 order per millisecond (1/1000th of a second) before latency (delay) occurs. Which means blasting 1000 orders in 100ms will begin overloading the network and causing delays after just the first 100 messages. Which means 900 messages will arrive late to other traders (competitors) computers. Which is the whole point of this high technology warfare."

What the author of this article seems to kinda understand 'one' single ramification of this type of network attack (a form of Denial of service DOS) with respect to increased latency of traffic during the time period the quotes are being tossed out they miss the most important point of this type of probing.

Imagine that you have a private network with multiple ways to send quotes.  i.e multiple points of access AND you can coordinate information between multiple HFT agents.  The speed which quotes can be fired and cancelled can be used to measure effects on subsidiary networks abilities to fire and cancel or fill orders.

I suggest the above noted type of HFT 'attack' is a network health probing strategy being used to determine if a particular market is 'weak' and highly prone to increased delays and order filling after a DOS blast occurs (hence more manipulatable).   This information would then be passed on to other HFTs to produce a coordinated attack either by network or by issue(stock/ETF).

I also suggest that HFTs are 'teaming' up since they all can utilize this info IRT.  In the loosest sense the HFTs can use the market itself for command and control type coordinated attacks in various ways.    These type of probes are being used to determine new market attack stratagies AND if it is not shut down soon will be used to create coordinated market attacks that probably will shut down entire markets not for milliseconds, but for minutes, hours or even permanently.   Think of if you could determine that a market could withstand no more than 1 quote/us before full DOS occurs in that market.  So you get 299 quotes and cancels/account/sec.  All you need to do is get 3K accounts under control to do coordinated quote stuffing to completely bring down a market.   In fact if you wanted you could probably completely dominate latency conditions for all other participants thereby completely controlling the flow of the markets at key times..

Now lets say 1 quote/us is more like 1 quote/100us - then you just need 30 accounts.  30-3000 accounts is easy to do btw given the greed of the markets to have more 'participants' especially with the SEC and the markets themselves unwilling crack down on this behavior.

Don't decieve yourselves folks this tactic is like tracer rounds being fired to light up the enemy territory.  It suggests attack is imminent, and it certianly indicates a desire by someone to gather key intelligence for some nefarious purposes.

End of Line

Fri, 01/04/2013 - 22:33 | 3124490 nanex
nanex's picture

Very well written! Thank you. If I could write that clearly on a very complex subject, I would. We publish/write about less than 5% of the unbelievable manipulation the SEC lets HFT get away with. Mostly because it's very difficult to write about the complex strategies in a few paragraphs (the attention span of a typical regulator or reporter).


You will enjoy/understand this:

Here's how often HFT shuts down the entire market for 10-20 milliseconds (an average of once every 20-30 seconds of the day for those who want the sound-bite version).

When you control latency, you have a built in group of buyers/sellers (those that use momentum based strategies) to trade out of your position.

Here's more detail:


Thank you again for posting. Well done.

Fri, 01/04/2013 - 23:09 | 3124538 ekm
ekm's picture

It's pretty simple.

I've been saying it's a long time already the QE is the death bed of HFT because QE removes stocks from the market into primary dealer's inventory.

HFT lives off ABUNDANCE of stocks. If stocks are scarce, HFT companies have two options:

- Kill each other one by one over few crums left in the market

- Get organized in alliances and the alliances will kill each other.


It's like wolf packs in winter. Food is scarce. What do they do? They get organized in wolf packs and attack each other over the scarce food.


There's no food in the market for HFT and they are very hungry. The stomach is shrinking and shrieking. It's clear to me that are creating HFT PACKS to fight over crums left.

Survival of the fittest. Nature at its best.

Hey Nanex, I've got the popcorn ready, just launch the National HFTographic movie of survival of the HFfitTest.

Fri, 01/04/2013 - 23:21 | 3124561 sink critically
sink critically's picture

First I noticed that the times when gold and silver were being crushed unmercifully strangely coincided with increased latency via

Without more information I couldn't be sure whether increased price suppression algorithms were causing internet provider delays for everyone using the internet for any purpose whatsoever, or the internet provider delays were increasing the effectiveness of the price suppression algorithms.

This is a very interesting piece of the puzzle. Now I am wondering whether actual people trying to use networks are simply in the way of wealth confiscation by software.

Fri, 01/04/2013 - 23:29 | 3124578 ekm
ekm's picture

It's like an internet videogame with players all over the world, but you don't get points and bragging rights, you actually gain wealth from somebody else equally nuts.

Fri, 01/04/2013 - 23:56 | 3124613 sink critically
sink critically's picture

Exactly, and the big players have learned to maneuver amongst the few individuals left standing using them for cover from the rest of the big players. As soon as an individual tries to go active their pockets are lightened.

Sat, 01/05/2013 - 00:01 | 3124620 ekm
ekm's picture

I'd say we are beyond "lightened pockets". We have entered the phase of "empty pockets"

Sat, 01/05/2013 - 00:14 | 3124637 sink critically
sink critically's picture

If they play this carefully there will be one more bubble as panic drives the rest of the money from other investment instruments into commodities. When that happens we will see what a real sheep shoring looks like. Imagine the average tv-news-believing 40+ year olds going all in on paper gold above 3000. It will be the pump and dump to end all pump and dumps, quite literally. Better the markets should malfunction and be suspended before then.

Sat, 01/05/2013 - 00:23 | 3124643 ekm
ekm's picture

Absolutely. It should have happened in Nov 2011 when MFG collapsed and euro bank lending froze 100%. bailout occurred only 2 weeks later.


It's all about CRUDE OIL. Slaughter is little to say. I think crude oil could go as low as $15 and come back up again.

People do not pay attention to the fact that out of 21 primary dealers, only 7 are US based.

Sat, 01/05/2013 - 00:42 | 3124666 sink critically
sink critically's picture

I will never forget the moment the bailout was voted, I was in the gym. I looked around to see if anyone else noticed that the world had just ended. Not one person with a clue in the room.

The beatings, and I believe you regarding foreign oil interests, will continue until they are no longer tolerated.

Sat, 01/05/2013 - 00:58 | 3124692 ekm
ekm's picture

That's exactly when I got interested in finance, the bailout. Been addicted since.

Sat, 01/05/2013 - 01:17 | 3124710 sink critically
sink critically's picture

I've always been mildly interested, but since 2008 watching for the last wheel to fly off the cart. Always cashed out of retirement funds at first opportunity, and only found myself in them because employers enroll slaves by default without notice. If the odds were not in the houses favor there would be no markets, casinos encourage people by allowing them to win and then taking them to the cleaners. It's all a con game, fiat, markets, bonds, but especially commodities. The signs were there, small companies selling for billions, deficits running to trillions. I became a silent observer, waiting for the first mention of quadrillions. I figured it would signal the end of restraint. It came in 2011 as the estimated amount of outstanding derivatives, 1.4 quadrillion or thereabouts. The mere fact that the banks are sitting on empty houses to prop up the market indicates the insanity is growing beyond all meaningful proportions. We've arrived at absurdity phase. Next up, the beginning of real value trading in earnest at the local and regional levels. It cannot be contained.

Sat, 01/05/2013 - 11:36 | 3125132 Boxed Merlot
Boxed Merlot's picture

I looked around to see if anyone else noticed that the world had just ended. Not one person with a clue in the room...



I don't think it will carry any validity until Leonard and Sheldon start talking about it.  Even then it will pass like the producer's comments at the end of the show.

Fri, 01/04/2013 - 23:22 | 3124564 Yen Cross
Yen Cross's picture


Fri, 01/04/2013 - 23:32 | 3124575 ekm
ekm's picture

Wonder why NYSE bankrupted and had to be bought out?

No crums left. ICE ate them up.

Fri, 01/04/2013 - 23:58 | 3124615 Yen Cross
Yen Cross's picture

NYSE- EuroNext> Ice!  Keep up the good work EKM!

Fri, 01/04/2013 - 23:55 | 3124601 ekm
ekm's picture

No different in 2007 and 2008.

All primary dealers are insolvent so they created wolf packs. Winter was tough, there was no food. Bear Stearns and then Lehman lost the battle. In Nov 2011, MFG lost anothe battle. JPM ate them up at it ate up Lehman. Barclays ate up Bear Sterns but recently is having some unsharpened teeth Libor problems.

The war is not over but.....the gov ordered the Fed to bright some summertime. Do not doubt, winter is still coming and the wolf packs of primary dealers will start eating up each other.

It's coming, pretty, pretty pretty soon, almost there. FONZANNOON has a very important idea. Primary delaers could be trying to lure private pension funds and I think they are having some little success seeing that private pension funds are buying index ETFs from the banks.

Sat, 01/05/2013 - 01:20 | 3124712 exartizo
exartizo's picture

similar tactics are being used in gold and silver markets to assess and control precious metals supply and demand.

Sat, 01/05/2013 - 10:34 | 3125063 Absinthe Minded
Absinthe Minded's picture

These friggin' metals charts looking like EKG charts is really pissing me off. Like silver topping out at 33.79 for hours at a time. Really? This is normal? There is no way. I just keep telling myself it's on sale.

Sat, 01/05/2013 - 05:01 | 3124848 Archduke
Archduke's picture



it does seem to highlight how detrimental certain badly-thought-of market operations can be.

instead of shoring up liquidity where needed and balancing the field, the skin-les cancel op is

proving to enable more imbalance, instability, and danger.


how would you fix it?  more fees and liquidity penalties for cancels?  delays before cancels?

allow cancels only on those way out of national bid/ask spread?  cancel ratios per account?


Mon, 01/07/2013 - 01:36 | 3127641 overbet
overbet's picture

I have a co-located box I access with remote desktop. If I open up the event viewer in the morning there is multiple failed login attempts from IP addresses around the globe. About 1 per second. Someone is constantly brute force attacking my box and I am sure many others. When I inquired about this it was brushed off as if it was a normal occurence and I should expect that others would constantly try to access my system.

Fri, 01/04/2013 - 21:15 | 3124335 EmmittFitzhume
EmmittFitzhume's picture

I don't even see the matrix anymore. All I see is blonde, brunette, redhead....

Fri, 01/04/2013 - 21:23 | 3124364 tickhound
tickhound's picture

You're missing out on all the dog eat dog fetus.

Fri, 01/04/2013 - 21:05 | 3124336 kill switch
kill switch's picture

It all comes down to this...Fuck the high HFT

Fri, 01/04/2013 - 21:15 | 3124351 Yen Cross
Yen Cross's picture

 Notice the rotation from  /

  • 3-WGR through •5-WGR .  Then there is a freefall/ask> into the next bid • 6-WGR. 

  NOTE: look at the number of exchanges that drop off in •6-WGR chart.  "ghost trading" illustrated!

Fri, 01/04/2013 - 21:32 | 3124386 luna_man
luna_man's picture



CRIMINALS!...large and small, your day is near.


way to keep the PRESSURE on...MY MAIN MAN!!


What you say?...  NO PRISONER'S!!

Fri, 01/04/2013 - 21:33 | 3124389 El Hosel
El Hosel's picture

The message is clear, the machine says fuck you.... over and over and over again, "Fuck You".

Now, what are you/we going to do about it?.... Nobody does shit, over and over and over again.

Sat, 01/05/2013 - 10:21 | 3125050 Absinthe Minded
Absinthe Minded's picture

What are you doing?

Fri, 01/04/2013 - 21:35 | 3124393 Atomizer
Atomizer's picture



Dear DHS monitored Proles,


We feel your HFT claims are absurd. [PC sanitized]


Best regards,



Fri, 01/04/2013 - 21:41 | 3124402 Yen Cross
Yen Cross's picture

Well done Atomizer! +1

We could do a Piers Morgan style Z/H petition, and vet the S.E.C /C.F.T.C that way. I'll bet Z/H could generate at least half a million votes in a week.

Fri, 01/04/2013 - 21:59 | 3124426 Atomizer
Atomizer's picture

Stay away from honeypot data mining. Piers Morgan may end up covering the dangers of cow tilting on Al Jazeera news.

Fri, 01/04/2013 - 22:11 | 3124446 Yen Cross
Yen Cross's picture

lulz.  Al Gore has that one covered.   I know you are aware. Just sharing with the peeps/

 REPORT: Al Gore Made $100 Million In The Current TV Sale, And Hoped To Close The Deal Last Year Before Taxes Jumped - Business Insider

Fri, 01/04/2013 - 23:43 | 3124596 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Who knew that "public service" could be so lucrative?

Fri, 01/04/2013 - 21:42 | 3124407 luckylogger
luckylogger's picture

Dude.......... they are out. Get the idiots to bid it up and sell it to them then get out at the bottom of the short term stop run................

Very common in the futures markets...... happens 20x a day in oil.

Fri, 01/04/2013 - 21:55 | 3124421 Yen Cross
Yen Cross's picture

 Exactly right luckylogger .    CL futures are/is just a tangible commodity, {Index} of one/ 

Let's cross Indexes and scales of trade, people that have ZERO KNOWLEDGE of the trade. ( just keyboard, and programming knowledge)

Fri, 01/04/2013 - 21:56 | 3124424 dime2962
dime2962's picture

Market Fragmentation at its Finest! When we had centralized flow I could report this kind of crap, now it happens so quick you can't see it in real time and need a CSI investigation to sort it out. 

Fri, 01/04/2013 - 22:15 | 3124457 Schacht Mat
Schacht Mat's picture

I recognize that I'm being a purist to those revelling in the cleverness of this technological algo on algo war.  In fact, this particular tactic reminds me of the work done by Bletchley Park and Biuro Szyfrow on the Enigma, as compared to the manner in which ciphers were previously broached; however, as the purpose of the stock exchange is to provide a mechanism for enabling the common man (person) to share in the potential benefits of the equity market, all of these manipulations of the stock exchange rules of conduct simply detract from its expressed purpose. 

Truly, we have two basic choices (with plenty of variants); either 1. clean up the stock exchange mechanics to allow the market to clear at a human pace with manipulations continually battled and exterminated, or 2. develop a direct internet peer to peer stock trading system with regulated (whatever that means today ...) disclosure documentation on shares that are forbidden to trade on any gambling (ooops - should have said stock) exchange, and turn over the operation of the stock exchanges to Las Vegas and Macao - at least they understand this racket and will be better at insuring that the house gets a cut, which we can then tax.

Sat, 01/05/2013 - 10:18 | 3125047 Absinthe Minded
Absinthe Minded's picture

It's only gambling if your a muppet.

Fri, 01/04/2013 - 22:16 | 3124458 ISEEIT
ISEEIT's picture

The most important thing to remember is...This not be preznit bama fault.

Nope4..Not at all.


Goo' thing bush ain't still the preznit cause if were he then shit be all kinda fuck up.

No what i sayin?

Fri, 01/04/2013 - 22:25 | 3124474 cynicalskeptic
cynicalskeptic's picture

A half cent transaction tax would end this crap REAL quick...... might even help cut the deficit.

Fri, 01/04/2013 - 22:47 | 3124508 Clowns on Acid
Clowns on Acid's picture

Remember Cynical - these are just orders that are cancelled, not trades. Thus there is no "transaction" from the Exchange point of view.

The rules of Exchanges have to be modified so that either HFT's are market makers (having to always maintain a 2 way bid/ask, orderly market) or if they are "just" HFT non market makers, then extra fees based on number of cancels per stock. The rule of so many cancels per sec (millsec) is just another easily manipulated schema from Exchanges that need all the HFT business they can get. 


Sat, 01/05/2013 - 10:41 | 3125022 Archduke
Archduke's picture

As mentioned in a previous ZH article, it's not that simple to determine what makes HFT.

There's miles of difference between Algo Brokerage Trading and HFT Program Trading.


Yet both use the same underlying markets and exchanges.  Some algos contribute

to liquidity and are beneficial.  some are detrimental, and some outright predatory.

Vwaps, Twaps, Povs, Hunts, are benign.  Momentum and Shortfall more ambiguous.

Note all these algos use cancels legitimately as they look for better opportunities.


It may be simpler to regulate in the US where all exchanges compete mostly on best

national price, but in MTFs competition can also be time of execution, ratio executed...

If you truly believe in free competitive markets, then you must allow these variants to

flourish and let the algos sort it out for themselves..


In any case Nanex shows this sophisticated DOS type attack is blatantly predatory.


Sat, 01/05/2013 - 10:45 | 3125068 Rainman
Rainman's picture

Don't forget the rebate arbitrage ( aka " the skim " ) financed by the natural order makers.

<page 3>

Fri, 01/04/2013 - 22:28 | 3124478 MedicalQuack
MedicalQuack's picture

Good catch from Nanex and it won't be the last:)  It's like a game to them. 

Fri, 01/04/2013 - 22:31 | 3124484 catacl1sm
catacl1sm's picture

looks like a dick to me.

Sat, 01/05/2013 - 02:02 | 3124509 Yes_Questions
Yes_Questions's picture



I've learned to channel my anger regards the fucking money controllers for the most part, but somehow when it comes to the HFT Graphics, not so much.


This is akin to surveillance video of someone you trust robbing you and that's just never easy to get over.


Don't think I haven't tried.



Fri, 01/04/2013 - 22:52 | 3124518 Cheshire
Cheshire's picture

Dear Zerohedge,

The machines are making it go up, so no one is complaining. If we stop them they will crash the market, then we have to get real jobs. Its abasically a hostage situation at this point.

Your Frieniemes

Fri, 01/04/2013 - 23:01 | 3124526 Atomizer
Atomizer's picture

HFT is no different than taking a photograph from your smartphone or tablet. It always leaves a fingerprint to the crime or the altercation towards constructing a crime.

For example..

The moment drunken passenger is taped to his seat during flight to New York after 'trying to choke one woman and ranting the plane was going to crash'

Don’t let the media fool you,  just use tools to uncover metadata information. []. This includes HFT fraud, winks..

Fri, 01/04/2013 - 23:12 | 3124548 Son of Loki
Son of Loki's picture

"Why steal less when you can steal lots more."


It's the New Wall Street paradigm.

Fri, 01/04/2013 - 23:36 | 3124590 loveyajimbo
loveyajimbo's picture

Since Schapiro is probably not a total moron... she should be prosecuted for corruption.  next up, Gensler, who is also a totally corrupt bag of shit.  Oops, forgot... Holder is a toxic 'roid himself, corrupt to the bone... Well, the new treasury Sec will not put up with these ongoing frauds... Jamie Dimon.

Fri, 01/04/2013 - 23:45 | 3124597 geewhiz190
geewhiz190's picture

2 negative events against the operation of a fair and orderly market were allowing the exchanges to go public, which created a conflict of interest-the more HFT, the more the exchange makes.  The second thing was decimalisation.  changing from fractions to decimals allows the machines to trade down to the fifth decimal point. the market is broken and is an example of how the big money interests continue to fuck everyone dumb enough to get involved.

Fri, 01/04/2013 - 23:54 | 3124610 economessed
economessed's picture

Dear SEC Porn Addicts and remaining others who can't make it in the private sector:

This is yet another example of why I refuse to "INVEST" in equity "MARKETS".  I buy guns now.  The returns are consistently higher, and I enjoy throwing lead at +1,200 FPS.  The guns I purchased within the last 18 months have a resale value over 30% higher than what I paid.  It's a much more understandable market, and I get to sell my guns to PEOPLE, not 1's and 0's blasted around on fiber optic networks.




PS:  Fuck you.

Do NOT follow this link or you will be banned from the site!