DoJ Confirms "Insider Trading" Probe Of HFT

Tyler Durden's picture

And all it took for the FBI, the SEC and now the DOJ to figure out the casino was rigged all along, was for a Michael Lewis book to do their job for them.


As WSJ reports,

The Justice Department is investigating high-speed trading practices to determine whether they violate insider-trading laws, Attorney General Eric Holder is expected to tell lawmakers Friday.


Mr. Holder, in prepared remarks, said the practice has "rightly received scrutiny from regulators."


"The department is committed to ensuring the integrity of our financial markets," Mr. Holder said in testimony about the Justice Department's budget before the House Appropriations Committee. "We are determined to follow this investigation wherever the facts and the law may lead."


The Federal Bureau of Investigation said earlier this week that it is probing high-frequency trading. New York Attorney General Eric Schneiderman, the Commodity Futures Trading Commission and the Securities and Exchange Commission are also looking into the practice.

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i_call_you_my_base's picture

Maybe Holder will deem HFT TBTF and selectively enforce the law.

eclectic syncretist's picture

maybe market volume will plummet now.  And what would happen then?

ArkansasAngie's picture

Why, the market will go up.  Little volume is much easier to manipulate.

bania's picture

Maybe Lewis can write an illustrated version of "Where's Corzine" next?

BaBaBouy's picture

Howlder Is Now Involved???

Wow, I Actually Had Hopes Something Would Get Done...

Dream On... Bitchez...

Thought Processor's picture




What a complete circus this is.

pemdas's picture

As an individual investor, here is a HFT issue I see often: 


            I put an order an order in for 5,000 shares at $7.00. They sell me 1 share at $7.00, then step in front and buy 4,999 shares at $7.0001, knowing they can most likely sell to some other retail buyer at $7.01 for a $35 profit, or at worst, if the market turns, sell to me at $7.00 for a 50 cent loss. Nice odds. My only recourse is to cancel my order, but then I end up paying a 100% commission for 1 share of stock.

Rock On Roger's picture

You are a speculator, not an investor.

Quit speculating, money for nothing.


Stack On

fonestar's picture

If Eric Holder is on the case does this mean he will be delivering HFT servers to Wall St.?  You know, to see if they get used and where they wind up?

Fish Gone Bad's picture

Let's see, has Holder done anything about MF Global yet?   

SamAdams's picture

Lip Service....  Like Feinstein whining about the NSA spying.  It's just BS politicians use to make it seem like they have the people's interests at heart.  Absolutely nothing positve will result of either of these traitor's words.

macholatte's picture



Hand  over some big Campaign Contributions and the Problem Goes Away.

-- Erik the Holdup Man

Dr. Kenneth Noisewater's picture

Put in a Fill Or Kill limit order.

I am a Man I am Forty's picture

that's what limit all or nothing orders are for

RafterManFMJ's picture

What a macabre circus this is.


crazzziecanuck's picture

Indeed.  $0.25 and a DoJ investigation let's you use a payphone.  DoJ "investigations" are just busy-work to make it appear they're doing something.

RedHarley's picture

I expect a few FBI raids on the firms of Obama donors to make sure any evidence ends up in the same dustbin as all of the stuff they took at Solyndra.

Bindar Dundat's picture

Something will be done, justice will be served. Brad will be charged for his actions at RBC.  

Blues Traveler's picture

The Jinn's media strategy is working nicely, the press can cover this through Nov elections, see the gov does care about the people.  Well actually mr holder, how much money does the HFT actually make on 50 shares of IBM.  You get it, this is not about the Lilliputians, this doesnt impact them. It is something bigger.

Rainman's picture

Public pension funds go boom.

Two-bits's picture

Not to worry Rainman, have you heard about the MyRA program?  We can protect your future from deceptive public pension funds, and tuck away your nest egg in safe US Treasuries.  Sign here and the automatic payroll deduction can begin. 


BTW, do you have health insurance?

Two-bits's picture

If now, after sidestepping so many other issues, Holder decides to make something of this, we can know for certain that the collapse is baked into the cake, and that this failed British spin-off is really dead.



jcaz's picture

For Holder to sidestep anything, he'd actually have to understand that something is going on-  ain't gonna happen, he's paid to be Sgt Schultz....

Two-bits's picture

Which proves my point.  He is incapable of independant logical thought, and he is directly controlled by his handlers. A sock puppet with googly eyes. 


Winston Churchill's picture

More like Inspector Clouseau in blackpaint..

Poundsand's picture

Wrong, it is time to get a big bump in those Democratic election campaign donations.  They were starting to slide and legal extortion is always the best way to go.

SDShack's picture

Bingo, I was thinking the same thing. Holder and the 0zer0 administration is just a 3rd world cop, shaking down citizens and businesses with the threat of serious time, just to get more payola to dole out to their sycophants.

Sudden Debt's picture

depends on the incentives he'll receive at the HTF kickback meeting he's organising this weekend. Nothing is set yet, let the bidding begin!!


My 2 cents? The HTF will pull the plug for 1 hour, the market will crash and at hour 1.00001 they'll be granted all the inside info and a chair at the FED and continue their business.

Bangin7GramRocks's picture

I think that you are right. It would take about an hour for the computers to show who really controls the economy and the investigation would end promptly. Maybe a .5% fine of profits would be a suitable tithe to make it all go away. The big banks just whisper the word derivitives and the gubmint shits its pants. Same thing.

GolfHatesMe's picture

Look the Fuck out!  You didn't tell me you were calling the Wolf!

Jumbotron's picture

Holder is not going to do shit because there is too much money to be made....not to mention the whole system will more rapidly collapse in the coming years once you eliminate HFT or severely restrain it due to regulations. 

This is just to scare the rogues in the system to go underground and be smarter so as not to embarrass the SEC any further......and to not take any more time away from their porn watching activities.

EverythingEviL's picture

What a fucking joke.  Like those assholes haven't known about this shit for years and they aren't all in on it.  They tweet out a bunch of shit like now they are going to do something about it because a book has made it public knowledge.  Fuck all of em.  This will be backpage news in a couple days for the mainstream again and they can go back to business as usual

sgt_doom's picture

And all it took for the FBI, the SEC and now the DOJ to figure out the casino was rigged all along, was for a Michael Lewis book to do their job for them.

What total bullcrap:  the point of Lewis' book is to focus ALL the attention on that small sliver of how the market is rigged, instead of publicizing the majority of the true rigging:

their internalization business, or how the top brokerages funnel 100% of their retail stock sales/trades, almost every day, to the top banks and hedge funds, where they do the matching, and have all the knowledge of said retail stock trades, on their internal systems (hence they are called the internalizers), also known as "dark pools."

(Plus, there's the DTCC's Stock Borrow Program, which allows for virtual naked shorting of stocks.)

The purpose of all of Mikey's books are to refocus or redirect away from the serious stuff, his book on the financial meltdown concentrated on the subprime market, pretty much to the exclusion of all else, the really important stuff, which would have put the banksters away for life.

Speaking of those banksters, the DOJ invokved the Law of Fraudulent Conveyance against an oil corporation for financial machinations to avoid paying fines --- all correct --- but the very same law is what all the banksters violated and could just have easily been used against them (as Prof. Michael Hudson [] remarked upon long ago!

digitlman's picture

5 years too late, fucking Place Holder.

dow jones 20000's picture

does this explain why the S&P just pooped itself?

Sudden Debt's picture

well... whenever a comet will hit earth, let's how we see it 20 years in advance...

they'll probably even first IPO it as a metal mine before they'll even call it a comet...

Dr. Richard Head's picture

Aren't they investigating the IRS for going after "conservative sheep groups", Benghazi, torture, NSA warrantless wiretapping, gun running, drug money laundering, etc, etc.?  Yeah, bury it all in an investigation and continue the fleecing and murdering.

SDShack's picture

I heard Holder is going to appoint John Corzine as Special Prosecuter to investigate HFT.

Tale2cities's picture

Yea and Obama said right after the IRS scandal broke "But I have got no patience with it, I will not tolerate it, and we will make sure that we find out exactly what happened on this,"
IRS responds it will take years too respond accurately to congressional requests for LLearner emails,etc.
You know,we can't talk about it because "there's an ongoing investigation"
Yea keep those investigations open forever,and never allow the truth to emerge. I hate all of those DC fuckers

firstdivision's picture

HFT was really a small time game compared to the Insider Trading still going on by banks.  Oh wait, I forgot, the "Chinese Wall" prevents IBD and Prop from talking...

sgt_doom's picture

Thanx, firstdivision, you are exactly on target!

Fix-ItSilly's picture

Insider trading?  Are they really going to indict the exchanges who provided different update rates on quotes when bribed?

sgt_doom's picture

Well . . . since all the financial exchanges and clearinghouses are owned by the banks and their oil companies, it seems highly unlikely, but should it be so, it will be done in such a manner that the exchanges get their fines back --- business as usual.

HRamos_3's picture

I'm pretty sure that the facts and the law will only lead to extra monies in Place Holder's pocket. So yea, bullish.

Ban KKiller's picture

Holder is a coward who is bought and paid for. Wall Street will stay rigged as the greedy are rewarded. Is Greenwich fire proof?

James Madison was a revolutionary at 23. 

SheepDog-One's picture

AH I in other words it will all be swept under the rug.

Bearwagon's picture

Probing? Like, with one of these famous anal-probes, usually said to be used by aliens?

Shrapnel's picture

Now that Holder is on the case, I definitely expect nothing to change.

Sven Sikztu's picture

the algos are trembling in their databases

Dr. Engali's picture

"And all it took for the FBI, the SEC and now the DOJ to figure out the casino was rigged all along, was for a Michael Lewis book to do their job for them"


They knew it was rigged all along, and they embraced it because the robots helped churn the "market" higher. The book doesn't have a thing to do with their current actions. It would not have seen the light of day if the .gov MSM propaganda machine didn't have something up their sleeve.