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How HFT Minted Money During the Financial Crisis
We'll give you a hint, says Nanex: fantaseconds. Fantaseconds, everywhere. This is how High Frequency Trading (HFT) practically minted money during the financial crisis. With no regulators in sight, HFT robbed investors and other traders blind. With very little effort, Nanex has created numerous charts to illustrate the absurdity that markets functioned well during the financial meltdown. Many of the short term oscillations shown in these charts were created by HFT algos to induce a lag and create latency arbitrage opportunities.
We are confident there are hundreds of thousands of examples like these during the fall of 2008, and that many would show far more egregious behavior than presented below. And yet the regulators could not spot a single one. Even after spending millions on MIDAS.
Here are just 2 examples for the biggest ETF - SPY...
Want to see more examples? How about 562 charts of QQQQ
?
Source: Nanex
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What part of the word corrupted do people not understand.
Golly gosh. Don't look no different than when the regulators are in their offices.
I wonder how much the midget tranny porn viewing is down from home computers.
Ah hem....
Isn't that the definition of a democrate?
Well, the past tense part means it's over, right?
It is like weeds in a garden.
Remind me where the regulators come from, again? Oh yeah, industry.
Joke's on Nanex, as regulators are color-blind from birth.
What a great gig. They aren't even using their own money. Ain't this how it's supposed to work? Give 'em no-interest money created out of thin air just for them, then look the other way when they leverage it up 50 times and use it to bilk the markets. Hey, it's all in an effort to recapitalize the zombie "banks". It's working smooth as silk! Too bad we peons can't get a piece of the action. Oh, yeah, I forgot -- it trickles down to us.
That means no more red and green charts. Problem solved.
Yes - this is the future.........
"And yet the regulators could not spot a single one. Even after spending millions on MIDAS."
Can't see what you ain't looking for and you don't want to find.
<All in the name of national security.....bitches.>
I believe you've hit upon it. Tools are useless when idle.
(Oh, I suggest udder cream for callouses. Check out the farm supply store. ...joking aside.)
Start treating these as incidents of financial terrorism.
GONEFutures , Inc.
Epic find, dude- this is REAL Pulitzer work.....
What does Crude oil look like during your study period - particularly the front butterfly spread ?
Look mister 'I think computers are stealing and are corrupt' conspiratorialist. We have the SEC and FTC for a reason and you don't work for them so sit down, shut up, and stay where you are. Step calmly into the unmarked black van and don't resist when the black bag is placed firmly over your head in order to transport you safely to be re-educated.
Even moreso, short sellers took advantage of rampant "fails-to-deliver" conditions, pushing down individual names and ETFs. One cannot blame short sellers for this - brokerages were all too easy to allow the conditions, and the SEC, even though it had the data to make enforcements, did nothing.
As for HFT: Gets too much press as the singular bad guy. Yes, there is abuse with HFT algos, but there is just as much if not much more on larger timescales, such as large block trades, taking out bid/sell stacks and stop orders (this is a truly old game), etc.
It's not time travel. It's not magic. It's just run-of-the-mill grand larceny.
Nanex backwards is Xenan. Xenan was a character in Xena: Princess Warrior, but is no relation to Xena, although Xena was the midwife at his birth..which probably explains why they called him Xenan...
This is true ...if you don't believe me...
And I suppose her calming influence was Xanax, her pet Rainbow Unicorn
BTW, you people know why you loose so much weight on LSD?
Can't get past the dragons guarding the fridge.
I hope the fine people at nanex don't get acquainted with one of the Nobel prize winners love drones.
Focus on the future .... we need to keep looking forward, not backwards. /sarc
Nothing to see here folks.
Thank you, drive through.
Regulators? Oversight? What's the diff if they are on the job or not? Did they catch Cornjulio (Corzine) or Dr. Mad Orf (Madoff)....in time, nope! Sack the whole sorry bunch and tell the bankers, from now on when they f+uck up their ass is sent to gitmo.
After 5 years of "free money" from the FED, the boys now have much deeper pockets. They have the ability to "buffer" the market. The goal is to trap buyers/sellers and to move the market against them in real-time.
money is power and when you control the money you control all the twats who want the fiat, funny thing is it's all just a paper dream, meaningless in the end....and this is why the aliens will exterminate us with extreme prejudice. If I was an extra terrestrial and took one look at this ficked up two legged orgamnism walking the planet that's exactly what i'd do. One look at Jamie Dimon, Ben Bernank, Greenspan et al. and there'd be no reason to let this animal live.
Botomy dudes, Botomy.