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It's Official: It's A Broken Market And "Hundreds Of Thousands" of Orders Affected

Tyler Durden's picture




 

It will not come as a surprise to too many Zero Hedge readers but we feel a big told-you-so dance coming on again.  Via BATS:

  • *BATS SAYS 'SYSTEM ISSUE' CAUSED PRICING PROBLEMS OVER 4 YRS:WSJ
  • BZX Exchange (10/24/08 - 01/04/13) Average Daily Incidents: 410.1 Total Incidents: 433,039

In simple terms BATS admits that the Reg NMS trading principle of NBBO (National Best Bid or Offer) has failed; meaning the core premise of market structure since 2005 has been massively abused by at least one and likely all exchanges. The bottom-line is that the primary and really only safeguard in the market when HFT was unleashed was never operational and the SEC has had i) no actual supervision over who or what was abusing the NBBO and ii) no way of keeping track of what really happens in the market.

 

 

Via BATS:

Dear Member,

 

Please be advised that BATS has determined that upon an NBBO update on BATS' BYX Exchange, BZX Exchange and BATS Options, there are certain cases where the Matching Engine will allow for a trade through or an execution of a short sale order at a price that is equal to or less than the NBB when a short sale circuit breaker is in effect under Regulation SHO. These cases result from the sequencing of certain required events in the Matching Engine related to re-pricing and sliding orders in response to the NBBO update.

 

In the first case, a visible order that is posted and has been price slid can execute at a price that trades through another market center's protected quote if that away market center locks the displayed price of the BATS order and then BATS receives another order that crosses the working price of the resting order.

 

In the second case, the system was programmed to allow non-displayed peg orders to re-price in response to a change in the NBBO prior to sliding previously booked contra-side hidden orders that now cross an away market center. As a result, it is possible that in response to a change in the NBBO, the price of a resting hidden order could be crossing the NBBO momentarily and an execution could occur at that crossing price against a peg order that is re-priced in response to the NBBO change, resulting in a trade through. This particular issue can also result in a short sale order executing at a price that is equal to or less than the NBB while a Regulation SHO circuit breaker is in effect.

 

These system compliance issues have resulted in the following incidents:

 

Trade Throughs

 

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

 

BATS Options

(02/26/10 - 01/04/13)
Average Daily Incidents: 1.4
Total Incidents: 617

 

BYX Exchange
(10/15/10 - 01/04/13)
Average Daily Incidents: 14.4
Total Incidents: 7,884

 

BZX Exchange
(10/24/08 - 01/04/13)
Average Daily Incidents: 410.1
Total Incidents: 433,039

 

Regulation SHO Incidents

 

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

 

BYX Exchange
(02/28/11 - 01/04/13)
Total Incidents: 174

 

BZX Exchange
(02/28/11 - 01/04/13)
Total Incidents: 3,489

 

BATS plans to deploy a permanent change to correct the second case on or about January 18, 2013 and the first case on or about January 25, 2013. Correction of the first case must be preceded by a rule filing with the SEC.

 

Please contact the BATS Trade Desk or your Director of Sales with any questions.

 

BATS Trade Desk
913.815.7001
tradedesk@bats.com
www.batstrading.com/alerts

 

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Wed, 01/09/2013 - 21:08 | 3139171 kdrury12
kdrury12's picture

so they screwed up on say, 500,000 orders over the last 4 years. Over that time, they probably handled 100 billion orders, so the error rate is pretty small here

Wed, 01/09/2013 - 21:12 | 3139185 I think I need ...
I think I need to buy a gun's picture

has anyone see corzine?

Wed, 01/09/2013 - 21:17 | 3139203 Never One Roach
Never One Roach's picture

Corzine is sulking in the corner...depressed he was not chosen for secretary treasurer.

Wed, 01/09/2013 - 21:39 | 3139295 Michaelwiseguy
Michaelwiseguy's picture

I've been researching the 14th Amendment;

I don't think anybody is questioning the validity of the national debt however, I am questioning how and in what manner payment of the debt will be made.

We can make payment to the Federal Reserve for the portion of US Treasury Bonds they hold with a $1 Trillion Platinum coin/coins. That doesn't mean the platinum coin is redeemable in physical platinum either.

Section 4.

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any state shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

http://www.law.cornell.edu/constitution/amendmentxiv

Wed, 01/09/2013 - 21:46 | 3139319 Dr. Sandi
Dr. Sandi's picture

Why don't you get your own fucking blog so we can all ignore your constant thread hijacking completely.

Wed, 01/09/2013 - 22:03 | 3139343 Michaelwiseguy
Michaelwiseguy's picture

The virtually the last thread I commented on is now at the bottom of the ZH page, the gun thread.  Why don't you go to one of the previous 6 threads I wasn't on if you don't like it and shut the fuck up?

Wed, 01/09/2013 - 23:13 | 3139547 NoDebt
NoDebt's picture

Quick question:  Who do you blame for everything that doesn't work out in your life?  Clearly you would never see any fault in your own actions (ever, under any circumstances) so I'm really curious how a person like you justifies rude, immature, childish behavior like this.  I mean, you're not even TRYING to fit in.  Yet, I don't think you're a troll with an agenda.  Even trolls have an objective.  I really think you're foating through this with no clue whatsoever what you're doing or why.

 

Wed, 01/09/2013 - 23:54 | 3139609 Michaelwiseguy
Michaelwiseguy's picture

To answer your question, I usually try to make well thought out comments, many people hear find those comments informative, and I get vastly more up arrows then down.  justifies rude, immature, childish behavior like this, You get back from me the respect you give and vise versa, we call it fight club here at ZH, makes it a lot more lively around here. Things in my life are working out just fine so far, I'm concerned about going forward, that's the problem with my country. The only agenda I have is fixing my country, and I'm not nor do I require being paid for my work.

As far as my previous comment that garnered so much ire from a certain individual, I sometimes have thoughts like that and want to get them out before they pass into my memory hole. I should have waited to post that one for the next thread that popped up where it would have been more appropriate. 

PS, My most recent thought;

We need Defense Rifles like AR-15s to defend ourselves against the 1.8 billion hollow point bullet purchase made by the Federal Government through the TSA for the DHS.

Wed, 01/09/2013 - 23:56 | 3139653 Cathartes Aura
Cathartes Aura's picture

.

I sometimes have thoughts like that and want to get them out before they pass into my memory hole.

as suggested, get your own blog.  you can store your fleeting thoughts, link your those "ideas" you're currently reading at the three internet-spaces you visit (your own admission), and offer up all the opinions you like.

all that is being suggested is you STOP using ZH as yourspace.com, stop with the OMG-threadjacks - which are daily.

come here and link your blog in-thread, like others do, fine, everyone then has the option to ignore or click forward - but stop acting like this is your homepage, it's hella annoying.

Thu, 01/10/2013 - 00:19 | 3139710 Manthong
Manthong's picture

And in related news, lawyers for Amalgamated Belfry, Inc. have filed a class action suit alleging that multiple exchanges had full knowledge of  trading discrepancies regarding BATS in Belfry transactions.

Thu, 01/10/2013 - 00:24 | 3139717 Michaelwiseguy
Michaelwiseguy's picture

Sorry. I'll accomadate you for a few days coming up since I'm going to be doing some major work to my truck that will last a week or so. This gun battle distracted me. yourspace.com, funny, more eyes on this #1 blog by far. I do think your comments are good though Cathartes Aura .

Thu, 01/10/2013 - 07:59 | 3140126 youngman
youngman's picture

I can just vision the Jury in that case......a bunch of unemployed minority sheeple who have no idea...no idea about computers...software....bots...algos...HFT´s ...or even the speed of light.....LOL.....

Thu, 01/10/2013 - 00:34 | 3139719 TruthInSunshine
TruthInSunshine's picture

The markets are completely rigged, manipulated & broken, and set up to be a wash, rinse & flush operation to relieve the plebes of their wages/stawk "investments"/401(k)s/paper "wealth" at regular intervals, you say?

It's all a looped pump & dump Ponzi, you say?

Who-could've-known-this? Jeremy Siegel certainly either didn't know it, or if he did, hasn't been honest with his students, readers or general public, and I find that hard to believe, given Jeremy Siegel's unimpeachable ethics, morals and scruples. /sarc

Don't take on debt if you haven't yet. Get out of debt if you're in it. Learn valuable skills that society deems necessary and that few people can provide. Take real value in exchange for that which you provide. Invest the real value you receive in tangible things that aren't depreciating, needless, consumerist garbage "goods," and stay the hell away from rigged "investment" enterprises/Ponzi schemes.

Opt out of the pen leading to the slaughterhouse.

Thu, 01/10/2013 - 00:30 | 3139729 Oh regional Indian
Oh regional Indian's picture

hmmmm...... a voice of intrusive but real inputs is hella(!!!!) annoying eh CA?

Tch.....

sad to read that coming from you, who has thread jacked many a thread for your feminist tirades....

Michael, FWIW, you rock. The world needs more strident truthers like you.

ori

Thu, 01/10/2013 - 00:52 | 3139786 Cathartes Aura
Cathartes Aura's picture

lol, well hello.

apparently a bit of unresolved emotion there OrI, if you're resorting to the "feminist" tag, as you know I don't refer to myself as "feminist" simply because labels require uniformity, and I don't do that - I think, and argue, for myself thanks.

all Michael was being asked to do is stop the top of the thread off topic-jacking - which apparently he was "taught" by you, according to posts a while back, so I suppose I understand your defending him.

also curious is your timing, last time you posted was two weeks ago, and yet here you are, defending your protégé?

*shrug*

Thu, 01/10/2013 - 00:03 | 3139669 laomei
laomei's picture

There are training requirements for servicemembers, and that's the standard ammunition they use as it has stopping power and does not overpenetrate.  If they wanted to kill you off, I'm very sorry, but they'll just drone strike you to death and there's nothing you can do about it.

Thu, 01/10/2013 - 00:34 | 3139740 NoControl
NoControl's picture

I am but one android, with a single weapon. There are hundreds of Sheliak on the way; and their weapons are far more powerful. They may not offer you a target. They can obliterate you from orbit. You will die - never having seen the faces of your killers. The choice is yours.

Thu, 01/10/2013 - 15:09 | 3141472 uncle_vito
uncle_vito's picture

Most all pistol ammo is hollow point.   Be worried when they buy the 5.56 which is for the M14.   Then they mean business.

Wed, 01/09/2013 - 23:14 | 3139550 Big Slick
Big Slick's picture

I took a corzine this morning.  First one in 3 days.  Felt GREAT after!

Thu, 01/10/2013 - 08:53 | 3140170 Its_the_economy...
Its_the_economy_stupid's picture

Bathroom humor, while low-rent, is ALWAYS appreciated!

Wed, 01/09/2013 - 21:47 | 3139320 knukles
knukles's picture

"for services in suppressing insurrection or rebellion"

Wed, 01/09/2013 - 21:59 | 3139348 Michaelwiseguy
Michaelwiseguy's picture

I bet that clause was added by the Rothschilds banksters. That clause should be amended.

Thu, 01/10/2013 - 01:44 | 3139888 Silver Bug
Silver Bug's picture

Wow what a shocker here! Anyone on Zero Hedge could of told you that for years! The market has turned into one massive ponzi scheme!

 

http://ericsprott.blogspot.ca/

Wed, 01/09/2013 - 21:18 | 3139204 philipat
philipat's picture

Don;t bother the SEC with these details. Nanex can watch this stuff whilst the SEC pursues more important matters like watching porn.

Wed, 01/09/2013 - 22:56 | 3139481 macholatte
macholatte's picture

 

Dear Tyler:

 

Please refrain from using old, twentieth century terms and upgrade to the new standards of the electronic age.

Henceforth, these terms should be used:

"Casino" replaces "Market" (market is like so gay)

"Gambler" replaces "Investor" (for clarity)

"Chips" replaces "stocks & bonds"

"Dealer" replaces "Broker"

"Mark" and "Chump" replaces "customer"

 

Thu, 01/10/2013 - 00:46 | 3139766 nope-1004
nope-1004's picture

You made an error.

 

"Muppet" replaces "customer".  So get with it, Muppitchez !!!!

 

Thu, 01/10/2013 - 06:39 | 3140079 Monedas
Monedas's picture

"Hoarder" replaces "Stacker" ..... take back our language !

Thu, 01/10/2013 - 07:43 | 3140111 Go Tribe
Go Tribe's picture

Who has an image of a bull getting ass-fucked?

Thu, 01/10/2013 - 08:38 | 3140152 tabasco71
tabasco71's picture

wrong website....?

Wed, 01/09/2013 - 21:27 | 3139249 brokenclock
brokenclock's picture

The rats are pointing fingers at the other rats.  Now is when everyone should start setting the microwave popcorn. lol 

It's game on.  They are going to push for the gun grab, ammo is  low or non existitant, ebt cards are shutting down for 24 hours, and NBBO is all bullshit.  Like anyone who sat infront of a terminal for 2 hours didn't know this.   This all can't be coincidence, can it?

 

 

Wed, 01/09/2013 - 21:56 | 3139341 espirit
espirit's picture

Only a coincidence in...

 

A)  a BANANAAA+ Republic

B)  Bizzarro World

C)  USSA

D)  All of the Above. 

Wed, 01/09/2013 - 21:50 | 3139329 Dr. Sandi
Dr. Sandi's picture

 

so they screwed up on say, 500,000 orders over the last 4 years. Over that time, they probably handled 100 billion orders, so the error rate is pretty small here

I think the point here is that the orders with errors are the ones that matter, since those are likely the ones that were nudged onto a siding for nefarious purposes.

Wed, 01/09/2013 - 23:53 | 3139632 francis_sawyer
francis_sawyer's picture

So the fuck what?...

~~~

You got jewed out a few more or less joobux here or there in a broken market...

BUYER BEWARE

Oh no wait... The market is controlled by 'Trekkies' & 'Birders' ~ Quick, let me reconsider & recalibrate...

Thu, 01/10/2013 - 02:20 | 3139926 Divine Wind
Divine Wind's picture

 

 

Solution:

Become Jewish, then study real hard, be a shrewd player and help your friends move up.

You can skip the Jewish part if you desire, but keep the other tenants and you will find the same success.

Then people can hate you.

 

Thu, 01/10/2013 - 04:42 | 3140028 Cap Matifou
Cap Matifou's picture

Jim Stone actually tried to become one, read on what happened

http://www.jimstonefreelance.com/jewish_community.html

 

Wed, 01/09/2013 - 21:53 | 3139336 Banjo
Banjo's picture

Yeah if you went shopping and they overcharged you at the counter no problem right. Especially when you think of the millions of items they scan and serve ever day.

Besides it will cancel out in the long run you know Im sure if you get over charged eventually you will make money and be under charged right!

 

Wed, 01/09/2013 - 23:00 | 3139493 centerline
centerline's picture

Just finding out after 4 years?  4 years of hiding it maybe?  You missed the point.  Something like this begs further questioning.  Your imagination can take it from here... maybe... just think evil.

Thu, 01/10/2013 - 01:22 | 3139851 Hobie
Hobie's picture

just think greed!

Wed, 01/09/2013 - 23:43 | 3139616 Everyman
Everyman's picture

Report information about this to the SEC Office of Insapector General.  They have to do an investiagation and reply with a Rep.s name.

 

http://www.sec-oig.gov/

 

THAT's how you fight these HFT assholez.

Wed, 01/09/2013 - 23:45 | 3139629 Sylvia Plath
Sylvia Plath's picture

... and despite this obvious piece of news, I bet more than half the idiots that post on here are still trying to "trade" this market!

Thu, 01/10/2013 - 07:23 | 3140099 TWSceptic
TWSceptic's picture

A manipulated market offers opportunities to profit from so the idiot is the one who ignores the opportunities.

Thu, 01/10/2013 - 00:31 | 3139730 ball-and-chain
ball-and-chain's picture

This market is set up for the big boys.

If you aren't a member of the club, get out.

Retail investors beware!

You will be fleeced.

http://www.angrysinner.blogspot.kr/2013/01/wednesday.html

Thu, 01/10/2013 - 02:46 | 3139951 TraderTimm
TraderTimm's picture

Anyone who trades in these markets are aiding and abetting the current broken system by virtue of supplying it with volume.

If you have the balls, I suggest stopping. A million posts on the inequities of HFT won't do much - and I hate it as much as Tyler does.

Starve the fuckers, now.

Thu, 01/10/2013 - 03:16 | 3139974 Archduke
Archduke's picture

perhaps. then again we don't know how crucial the missed trades were.

it's also interesting that it concentrates on BZX.  smells like willful abuse.

 

what I find astounding is that this took 4 years to discover?

nobody noticed that their orders were crossing the NBBO?

 

Thu, 01/10/2013 - 09:16 | 3140200 Arnold
Arnold's picture

Perhaps Someone with integrity,obviously low in the ladder,

filed the report.

 I'm sure it is fixed.

Thu, 01/10/2013 - 10:43 | 3140423 insanelysane
insanelysane's picture

It's not and "error rate", it is a "manipulation rate".

Your logic is that if banks have 100 billion people go up to the tellers over 4 years, then 500,000 bank robbers is not a big deal.

Wed, 01/09/2013 - 21:08 | 3139172 Fukushima Sam
Fukushima Sam's picture

Shocked, I tell you!

Wed, 01/09/2013 - 21:18 | 3139210 CPL
CPL's picture

I am Jack's complete lack of surprise.

Wed, 01/09/2013 - 21:33 | 3139277 knukles
knukles's picture

I am Jack's unsurprised 4 year prolapsed rectum.

Wed, 01/09/2013 - 22:23 | 3139404 CrimsonAvenger
CrimsonAvenger's picture

Rectum? Coulda killed him!

Wed, 01/09/2013 - 23:49 | 3139636 Temporalist
Temporalist's picture

Aaaannnnnnddddd.....it's gone!

http://www.youtube.com/watch?v=4TlPo0yCSa4

Wed, 01/09/2013 - 21:09 | 3139175 SubjectivObject
SubjectivObject's picture

So what forced BATS to divulge this?

Pending litigation?

Why not let the charade contiue unanounced?

Wed, 01/09/2013 - 21:20 | 3139219 El Oregonian
El Oregonian's picture

Jon Corzine was in control, right? Good, then everything is resolved, no charges, and the SEC and the rest of the watchdogs can go back to sleep. ZZZzzzz...

Wed, 01/09/2013 - 21:21 | 3139224 CPL
CPL's picture

Power shortages.

Wed, 01/09/2013 - 21:22 | 3139228 yogibear
yogibear's picture

It's a Cover Your Arse announcement. 

Wed, 01/09/2013 - 21:09 | 3139176 cnhedge2
cnhedge2's picture

short sale order at a price that is equal to or less than the NBB? it means the shrot sale drives down prices, right?

http://www.cnhedge.com/

Wed, 01/09/2013 - 21:09 | 3139177 SHEEPFUKKER
SHEEPFUKKER's picture

I feel a 4 year investigation coming on. 

Wed, 01/09/2013 - 21:52 | 3139332 JLee2027
JLee2027's picture

With an end result that nothing happens.

Thu, 01/10/2013 - 05:21 | 3140051 Poetic injustice
Poetic injustice's picture

"No guilt admitted, 10,000 dollar fine".

Wed, 01/09/2013 - 23:08 | 3139525 Water Is Wet
Water Is Wet's picture

This time they'll find manipulation in the silver market for sure!

Wed, 01/09/2013 - 21:11 | 3139180 Wakanda
Wakanda's picture

The Mayans were right.

Wed, 01/09/2013 - 21:31 | 3139266 Joe moneybags
Joe moneybags's picture

They might be right, but they haven't sent me my 2013 calendar yet.

Wed, 01/09/2013 - 21:35 | 3139280 knukles
knukles's picture

rock, hammer, chisel

Thu, 01/10/2013 - 05:22 | 3140052 Poetic injustice
Poetic injustice's picture

Because you tried to pay with dollars. They accept only gold.

Wed, 01/09/2013 - 21:12 | 3139183 dbTX
dbTX's picture

The "market" has been more than broken for a long time; and they wonder where the retail investor is. I'm at home thank you very much buying rental property with both hands.

Thu, 01/10/2013 - 00:33 | 3139737 Acidtest Dummy
Acidtest Dummy's picture

yep, casinos are for losers.

Wed, 01/09/2013 - 21:13 | 3139188 Cognitive Dissonance
Cognitive Dissonance's picture

"....but we feel a big told-you-so dance coming on again."

Does it include alcohol and loose women?

<Just askin' so I'll know if I should bring my Blue Suede Shoes.>

Wed, 01/09/2013 - 21:38 | 3139288 knukles
knukles's picture

I'll never join one of those online dating services. I prefer to meet someone the old fashioned way.

Through alcohol and poor judgement.

Wed, 01/09/2013 - 23:01 | 3139500 Cognitive Dissonance
Cognitive Dissonance's picture

I seem to remember a comment left by you a day or so ago about waking up from a blackout drunk and getting the hell out of wherever you were in a big hurry.

Is that what you're talking about? :>)

Wed, 01/09/2013 - 21:14 | 3139195 fonzannoon
fonzannoon's picture

The S&P was up like 14% last year.

The PPT has neither the time nor the inclination to explain ourselves to a retail sheep who rises and sleeps under the blanket of no volume ramps that we provide, and then questions the manner in which Kevin provides it. I would rather you just said thank you, and went on your way, Otherwise, we suggest you pick up a bloomberg terminal and get better execution. Either way, the PPt don't give a damn what you think you are entitled to.

Wed, 01/09/2013 - 21:59 | 3139349 espirit
espirit's picture

Amen +1

Wed, 01/09/2013 - 22:35 | 3139427 AccreditedEYE
AccreditedEYE's picture

Yup. Annnnd, BTFDYI

Wed, 01/09/2013 - 23:50 | 3139640 Just Ice
Just Ice's picture

Dip?  You must mean last year's.  Hourly trendlines on indices I'm following appear rather vertical.  (started shorting tfh nuzzling 880)

Wed, 01/09/2013 - 21:16 | 3139198 The Axe
The Axe's picture

This would have been  way easier if the ferry   just sunk   !!!!!!

Wed, 01/09/2013 - 21:17 | 3139202 FinalCollapse
FinalCollapse's picture

SEC ??? Ha ha ha ha ha!

Wed, 01/09/2013 - 21:21 | 3139222 yogibear
yogibear's picture

The SEC is busy with porn this time of year.

Wed, 01/09/2013 - 21:38 | 3139289 Vegamma
Vegamma's picture

I thought the SEC was in offseason since they just won another football championship.

Wed, 01/09/2013 - 21:20 | 3139214 tom a taxpayer
tom a taxpayer's picture

Will I be getting a refund or something?

Wed, 01/09/2013 - 21:20 | 3139216 yogibear
yogibear's picture

A small fine and all is forgiven.  Maybe someone threaten to expose the trading irregularity They announce to CYA.

That's how it works when fraud is is so rampant. 

Wed, 01/09/2013 - 21:25 | 3139240 Sabibaby
Sabibaby's picture

instead of slapping them on the wrist why don't we slit their wrists and watch them bleed out?

Wed, 01/09/2013 - 21:39 | 3139294 knukles
knukles's picture

Cut yourself for Justin Beiber games!

Wed, 01/09/2013 - 21:20 | 3139218 Theos
Theos's picture

So the error rate was what, 0.000001%? 

Wed, 01/09/2013 - 21:25 | 3139242 Everybodys All ...
Everybodys All American's picture

that's what they used to say about the number of subprime loans.

Thu, 01/10/2013 - 01:29 | 3139863 Sabibaby
Sabibaby's picture

In the article you can see the percentages. Comprehension is key here.

Wed, 01/09/2013 - 21:21 | 3139225 rsnoble
rsnoble's picture

batshit.

Other than that thought, this crap is just way too fucking complicated. If we ever do get a big solar flare etc boy are we gona be screwed.  Howard what are we gona do without a microwave!!!  

Wed, 01/09/2013 - 21:22 | 3139226 Cdad
Cdad's picture

Just like on GWR recently...as well as SHW.  The HFT, inside, plugged in criminals execute their trades at whatever price they like...skewing the charts, and setting shorts positions where you and I cannot.

The crime wave continues...I guess.  And so to...the death of capital formation shall continue until such time as the SEC, the Zombie fucking criminal banks, and DC finally realize...that we Average Joe's are not as stupid as presumed.

You see...we have the internet now.  Mind control is much harder as a result.  So good luck dancing the S&P on the head of an HFT pin...as the complete bankruptcy of America approaches.  Good luck indeed...dear criminal syndicate known as Wall Street.

Good grief [and by that I mean...FUCK YOU SEC!]  Every last one of you pricks should be fired tomorrow.

Cdad...flushing with indignation.  Go get 'em Nanex!

Wed, 01/09/2013 - 21:22 | 3139227 Catullus
Catullus's picture

Please forward all formal written complaints to the complaint box next to the bathroom... in hell.

Wed, 01/09/2013 - 21:24 | 3139234 Sabibaby
Sabibaby's picture

If you work for the SEC, prepare to have your nuts chopped off!

Wed, 01/09/2013 - 21:52 | 3139333 Dr. Sandi
Dr. Sandi's picture

Yeah, right.

More likely gnawed off by crickets, which I can hear now.

Wed, 01/09/2013 - 21:24 | 3139235 ziggy59
ziggy59's picture

Hmmm...BATS, GS, JPM, etc..gotta be a Word Jumble in there...

Wed, 01/09/2013 - 21:25 | 3139239 The Shootist
The Shootist's picture

wake me when the DOW drops 1,000 points, yawn.

Wed, 01/09/2013 - 21:32 | 3139270 Lucius Corneliu...
Lucius Cornelius Sulla's picture

I'm waiting for DOW $3,500 or XOM with a 6% dividend, which ever comes first.

Wed, 01/09/2013 - 21:32 | 3139271 Lucius Corneliu...
Lucius Cornelius Sulla's picture

I'm waiting for DOW $3,500 or XOM with a 6% dividend, which ever comes first.

Wed, 01/09/2013 - 21:26 | 3139244 Spastica Rex
Spastica Rex's picture

Sometimes it seems like none of this shit really matters...

Wed, 01/09/2013 - 21:41 | 3139301 knukles
knukles's picture

Ah, those precious moments of clarity....

Thu, 01/10/2013 - 04:26 | 3140009 Temporalist
Temporalist's picture

It just doesn't matter!  It just doesn't matter!

http://youtu.be/e9mf3Bypyk8?t=13s

Wed, 01/09/2013 - 21:29 | 3139257 Joe moneybags
Joe moneybags's picture

I've got more than a few trades that I'd like to see cancelled.

Wed, 01/09/2013 - 23:11 | 3139535 edb5s
edb5s's picture

Goddamn you, VXX.

Wed, 01/09/2013 - 21:30 | 3139262 Racer
Racer's picture

Yes and like the mortgage fraud, libor fraud etc., etc., etc., etc., 

All that can be expected is microscopic fine if that and back to the normal fraud, more fraud and more fraud.

Do not put any of your money in this fake 'market' unless you are a complete an utter amoeba

Wed, 01/09/2013 - 21:34 | 3139278 Joe moneybags
Joe moneybags's picture

+1 for original amoeba metaphor

Wed, 01/09/2013 - 21:31 | 3139267 nmewn
nmewn's picture

About this whole concept of law and the enforcement of it thingy...it seems a little useless when the criminals make the laws.

Wed, 01/09/2013 - 21:42 | 3139306 knukles
knukles's picture

Generally might be termed a "Criminal Enterprise"

Thu, 01/10/2013 - 00:38 | 3139748 Acidtest Dummy
Acidtest Dummy's picture

Well, to be fair, "All crime begins with politicians."

Wed, 01/09/2013 - 21:33 | 3139276 HaroldWang
HaroldWang's picture

Wasn't it just last week when several stocks like AAPL, GOOG, etc. were going nuts in the middle of the day? And no one even seemed to care or talk about it after it happened, except here of course. But not one other source hardly even mentioned a pretty big screw up. Seems like it's so common now, no one really cares.

Wed, 01/09/2013 - 21:36 | 3139282 SmoothCoolSmoke
SmoothCoolSmoke's picture

Tyler , keep your eyes on the spinning watch and repeat after me.: "Markets that go up are not broken. Markets that go up are not broken.  Markets that go up......

Wed, 01/09/2013 - 21:38 | 3139291 Joe moneybags
Joe moneybags's picture

"...the system was programmed to allow non-displayed peg orders to re-price in response to a change in the NBBO prior to sliding previously booked contra-side hidden orders that now cross an away market center."

Wow.  I'll never trade another stock again as long as I live.

Wed, 01/09/2013 - 21:43 | 3139311 knukles
knukles's picture

When you don't know, just mumble some shit

Thu, 01/10/2013 - 00:03 | 3139671 Just Ice
Just Ice's picture

Touche.  Things that aren't right must always be explained in complexity.  How else to baffle 'em with bullshit and, if need be, later call it disclosure?

Wed, 01/09/2013 - 23:26 | 3139575 lewy14
lewy14's picture

The scandal isn't that there's bugs, it's that the "feature list" is untestable and subtly inconsistent with the NBBO. Non-displayed peg orders? Really? WTF.

Require all matching engines to be open-source. Post them to GitHub. Limit order types to a sane minimum. Sorted.

Wed, 01/09/2013 - 21:41 | 3139297 lunaticfringe
lunaticfringe's picture

Let me add this to the list of shit that shocks me.

King Obama. check

Jon Corzine grand theft. check

Rule of law which only applies to the "little people" check

New law requiring precious metals transactions be made with something other than cash. check

Broken stock market. check

 

Ok. Got it.

Wed, 01/09/2013 - 21:41 | 3139302 yogibear
yogibear's picture

Muppets,

if you were wondering about the unusual pricing at times there was an explanation.

Too bad there isn't a dam thing you can do about because we already covered ourselves!

- BATS

Wed, 01/09/2013 - 22:48 | 3139462 old naughty
old naughty's picture

eh, we muppets can do the (victory) dance, can't we.

Little mercy. Sweet.

Wed, 01/09/2013 - 21:41 | 3139305 sockratte
sockratte's picture

8 days left to the next bug

Wed, 01/09/2013 - 21:43 | 3139310 Spigot
Spigot's picture

 America's and Europe's 21st century answer to 20th century Soviet era propoganda: Potemkin Markets.

Wed, 01/09/2013 - 21:50 | 3139322 chump666
chump666's picture

...and the 3pm meltups?

"Once you realize what a joke everything is, being the Comedian is the only thing that makes sense"

The market flush will be orgasmic

Wed, 01/09/2013 - 22:01 | 3139354 Joebloinvestor
Joebloinvestor's picture

When are they gonna announce the markets are manipulated?

Wed, 01/09/2013 - 22:04 | 3139361 Cheshire
Cheshire's picture

Did they just say the markets gonna crash on Jan 18.

Wed, 01/09/2013 - 22:29 | 3139366 pndr4495
pndr4495's picture

At some point the parasite destroys the host and must find another ; is what has evolved in our markets really innovation ?  I wonder....  Can the human being slow poke floor personnel bring back the ORIGINAL integrity and ethos to the markets.  Doubtful , because Humpty Dumpty has fallen off the wall , and clearly our markets are broken .  Authors Arnuk and Saluzzi are absolutely right about that.  The fallout from this evolution could be real messy - especially if it ends up as an us v. them contest.   

Thu, 01/10/2013 - 00:48 | 3139773 Acidtest Dummy
Acidtest Dummy's picture

Wealth flows from access to power more than from hard work or risk taking behavior.

Wed, 01/09/2013 - 22:07 | 3139369 razorthin
razorthin's picture

These fukkers are going to be cleaned out by the class action sharks.  Good riddance.

Wed, 01/09/2013 - 22:10 | 3139373 TruthBeforeAll
TruthBeforeAll's picture

On a lighter note, Hasbro is looking to replace a couple of the Monopoly game pieces with updated versions. Maybe ZH could offer them some suggestions as to what those pieces should be.

Monopoly Upgrade

Wed, 01/09/2013 - 22:28 | 3139417 YouThePeople
YouThePeople's picture

a little metal printing press

Wed, 01/09/2013 - 22:37 | 3139431 TruthBeforeAll
TruthBeforeAll's picture

nice!

Wed, 01/09/2013 - 23:34 | 3139594 Manthong
Manthong's picture

a little metal guillotine.. or gallows?

Thu, 01/10/2013 - 07:21 | 3140098 Monedas
Monedas's picture

Corzine "get out of jail" card !

Thu, 01/10/2013 - 01:37 | 3139877 Dr. Engali
Dr. Engali's picture

An AR-15.

Thu, 01/10/2013 - 03:22 | 3139979 Archduke
Archduke's picture

investment banks and hedge funds, denominated in billions.

utilities can be central banks. prison and go are irs and fed.

 

 

 

Thu, 01/10/2013 - 07:24 | 3140100 Monedas
Monedas's picture

Oriental Ave. moved over by Park Place .... Mediterranean Ave. stays put !

Wed, 01/09/2013 - 22:10 | 3139376 buzzsaw99
buzzsaw99's picture

Step 1) Cause flash crash

Step2) ???

Step 3) Profit!

Wed, 01/09/2013 - 22:17 | 3139389 massbytes
massbytes's picture

null

Wed, 01/09/2013 - 22:20 | 3139397 All Out Of Bubblegum
All Out Of Bubblegum's picture

I'm long on beans and rice.

Wed, 01/09/2013 - 22:21 | 3139401 ebworthen
ebworthen's picture

O.K., never EVER cut, de-seed, and slice a Jalapeno pepper then take a piss without washing your hands first!!!

I just did this and my dick is on FIRE!!!

OUCH!!!

Oh, and don't put money in the Wall Street casino unless you are comfortable losing it.

Wed, 01/09/2013 - 22:44 | 3139447 Michelle
Michelle's picture

Regarding jalapenos - Wear disposable gloves and use a very sharp knife so the juice doesn't spray out when cutting.

Regarding Wall Street - Wear full body armour and pack a glock.

 

Thu, 01/10/2013 - 02:06 | 3139913 Spigot
Spigot's picture

Michelle, I am disturbed to consider who, among your male intimates, let you know you should wear gloves next time !8-*

Thu, 01/10/2013 - 01:27 | 3139860 Acidtest Dummy
Acidtest Dummy's picture

Read Amazon.com: Customer Reviews: Veet for Men Hair. You will laugh, and realise yours was not that bad.

I got it from mefi.

Thu, 01/10/2013 - 07:32 | 3140102 Monedas
Monedas's picture

Cut off the stem .... exposing pulp and seed mass .... insert paring knife .... separate pulp and seeds .... then slice and dice, etc. .... wash hands with hot soapy water .... do not rub eyes, nostrils, penis, anus or vulva .... enjoy !

Wed, 01/09/2013 - 22:25 | 3139409 dirtyfiles
dirtyfiles's picture

the only thing unmanilulated yet is the weather ?

Wed, 01/09/2013 - 22:51 | 3139459 El Hosel
El Hosel's picture

...  Hardly, they have been trying for a while, somebody here at ZH might be able to shed more light on those efforts.

Thu, 01/10/2013 - 00:18 | 3139709 Cathartes Aura
Cathartes Aura's picture

best to shed your own light on the subject, as people hold pretty polarised opinions. . .

but type "stratospheric aerosol geoengineering" into your favourite search engine, read what you're drawn to - this might get you started.

also, another poster had this up earlier, recommended viewing.

best wishes, stay curious.

Wed, 01/09/2013 - 22:34 | 3139421 Yen Cross
Yen Cross's picture

 OFF TOPIC: Does anyone really believe these numbers out of China?

 

  Tentative   CNY     Chinese Trade Balance 31.60B 19.70B 19.60B  

Are you fucking kidding me?  The PBoC is talking lowering the RRR and doing reverse repos, and the print is 75% higher!

Wed, 01/09/2013 - 22:50 | 3139470 chump666
chump666's picture

No.

China is losing the plot in a titanic way. 

Wed, 01/09/2013 - 23:27 | 3139577 Yen Cross
Yen Cross's picture

 Chump, 200 day simple moving average (DXY) is the pivot. That girl Orly runs the 5 point pivot (Gartly). She is pretty good on this particular trade.

  Don't get lost in the pattern. A reversal is coming,.

Wed, 01/09/2013 - 23:43 | 3139617 chump666
chump666's picture

I am pretty amazed at Asia buying the USD for the last 6mths.  I think it's USDs under the mattress trade.

For me, it's the S&P and Dow reversal.  Very tuff trade since the market is heavily geared and the HFTs are supporting the MAs. So it's tight and sideways. The money printer supports need to be tested, i think everyone trading on the earth is wondering when that will happen.

Thu, 01/10/2013 - 02:23 | 3139654 Yen Cross
Yen Cross's picture

 Chump you are not off on your thinking. The $ has been bought during risk on , and NOT been bought "risk off".

 The h4 chart need some adjustment. I suspect the Fed. is playing games with liquidity, with Asia and South America on swaps.

  Japan is corn holed , and we know it. South korea and Indo-China are going to eat them for lunch!

  Traders are perplexed over the $ strength during equity market strength. My guess is that the Fed. want's a really low price for it's next bond purchase.

 Do what you want Chump. I'll do what I want. i made money in December. It's just rinse wash $ all over again.

Wed, 01/09/2013 - 22:35 | 3139426 dirtyfiles
dirtyfiles's picture

and I'm long bears here

Wed, 01/09/2013 - 22:40 | 3139434 Yen Cross
Yen Cross's picture

CYN: print / 31.60B vs 19.70B consensus . previous post was 19.60B!

 Must read>Is this spike 'one last hoorah' for iron ore?

Wed, 01/09/2013 - 22:38 | 3139435 Michelle
Michelle's picture

"and the SEC has had i) no actual supervision over who or what was abusing the NBBO and ii) no way of keeping track of what really happens in the market."

Ask Knight Capital, there are some dead bodies under that pile. Anybody else find it interesting and surprisingly coincidental that Knight's system update just happened to be released on the same day as the NYSE Retail Liquidity Program and was it's true purpose to sniff out the culprit? Also interesting is we haven't had another market wipeout since, makes one go hmmm....

Wed, 01/09/2013 - 22:42 | 3139439 Atomizer
Atomizer's picture

Get back into the market you idiots, the tank continues to be holding room temperature measurements. We're climbing out from the path to recovery you fucking lemmings! Watching panic ensue one popcorn puff at one time.

/sarc

Wed, 01/09/2013 - 23:14 | 3139549 Cheshire
Cheshire's picture

bullish

Thu, 01/10/2013 - 00:00 | 3139664 williambanzai7
williambanzai7's picture

I could have a field day rewriting that monstrosity of opacity and jargon and perhaps I will.

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