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Parasite Turns On Parasite: HFT Sues Other HFTs For "Egregious Manipulation" Of Treasury Securities
There was a time when those who dared to call out the massive Libor manipulation conspiracy (such as what Zero Hedge did with one of its first posts in 2009) for being a massive Libor manipulation conspiracy some 4 years before the "theory" became a fact, were branded as scaremongering, fringe voices, best to be ignored. Then, of course, once the "theory" became "fact" it suddenly was perfectly obvious to everyone in retrospect.
But the bigger question, and what stumped the so-called experts, is how could something so vast, with so many moving pieces, remain a secret for as long as it did.
The answer is extremely simple: everyone who was in on the "secret" was also benefiting from it: from the lowliest Libor rigger to the CEO of Barclays and every other major bank, they all knew what was going on, but also knew that if the information became public knowledge, the jig would be up, and everyone's benefits would evaporate with some even going to jail (at least in a hypothetical legal system in which bankers actually go to jail). In other words, it was merely a case where everyone's interest was aligned to maintain the conspiracy cartel as long as possible.
Which brings us to High-Frequency Trading: another vast "conspiracy", this time involving market rigging and manipulation, which Zero Hedge also called out as early as April 2009, only to be mocked before it became a generally accepted fact that the "algos" manipulate and frontrun virtually any security that is traded on an exchange or over the counter. This culminated with Michael Lewis' book "Flash Boys", only unlike the Libor case, there was absolutely no response because unlike Libor, and then FX and then gold rigging, the Federal Reserve's own activity often depends on its symbiotic collaboration with the HFT community's upward momentum bias (by way of Citadel, a peculiar close relationship between the NY Fed and Citadel we have discussed in the past). That, and there was also no informant to turn sides with the Feds, and make a case that goes to the very top. At least not yet.
Because the catalyst that cracked the Libor conspiracy was when the members started to make less and less money, until ultimately the formerly golden goose was bled dry. At that point, their incentive to keep their mouths shut became nil, and in some cases negative. From that point on, it was just a matter of time before the regulators had a case against the conspiracy granted to them on a silver platter.
The same is now happening to high frequency trading, because in a market in which volumes are crashing to unprecedented lows, and where there are no longer whale accounts for the HFTs to frontrun, pardon "provide liquidity to", there is no longer a need for as many HFT firms. And those firms which end up on the losing end of the technological arms race, now that there is not enough profits for everyone to go around, are suddenly incentivized to bust the whole criminal ring wide open. Or in the words of Louis XIV, "After me, the flood."
Which brings us to a the case of HTG Capital Partners, Plaintiff v John Doe(s), defendants, case 15-cv-02129, Northern District of Illinois.
Who is HTG Capital?
Here is the firm's description from the horse's mouth, Chris Hehmeyer, its CEO:
HTG is a proprietary trading company that some might call an aggregator of traders and trading groups. We're members of the exchanges, and we get financing from the banks.
We have a very diverse way of executing trades. We have colocated servers at the exchanges, at the facilities in Chicago, New York and London. We do high-frequency, automated FX trading. We have people that do OTC trades over the phone. We have people still in the trading pit and we have people who make trades with a click of the mouse. We also have people who do everything in between. We execute in a whole variety of ways, depending on the market.
We do very little equity securities. We trade a lot of different futures. In futures, we trade stock indexes, interest rates, commodities, crude oil, gold, silver, copper, cattle, soybeans, corn, sugar and cotton -- we trade a lot of different commodities. We don't trade a lot of futures options, but we certainly trade some, particularly interest rates, crude oil, metals, energy and FX options. So we trade a lot of different products. We even have U.S. government securities -- that's where we arbitrage the futures.
The last is particularly relevant, because the abovementioned lawsuit is precisely one in which the dirty laundry within the HFT cabal finally emerges. The irony: HTG is suing a group of unknown other HFT firms for "egregious manipulation" of US Treasury futures, i.e., spoofing - one of the biggest crimes the HFT syndicate engages in on a daily basis (we will let slide the delightful irony that HTF does not even know who to sue when considering that HTG CEO Hehmeyer has been an outspoken proponent of anonymity in electronic trading and his "public campaign on the issue contributed to the decision by CBOT and CME to suppress identifying information in the clearing process for trades." Yes, ironic).
What does HTG allege?
From the lawsuit:
This matter involves the egregious manipulation of the U.S. Treasury futures markets trading at the Board of Trade of the City of Chicago (“CBOT”), a designated contract market and a wholly-owned subsidiary of CME Group, Inc. (“CME Group”). Since at least January, 2013, and continuing through at least August, 2014, the Doe Defendant(s) engaged in an illegal form of market manipulation known as “spoofing” in the U.S. Treasury futures markets. The term “spoofing” refers to, among other things, the manipulative practice of entering bid or offer orders with the intent to cancel those orders before execution (these orders are hereinafter referred to as “Deceptive Orders”). Examples of spoofing include entering orders to create the appearance of false market depth or to create artificial price movements upwards or downwards. This practice enabled the Doe Defendants to manipulate the market to their benefit, and to the detriment of HTG and other market participants. This Complaint seeks to recover the financial losses HTG suffered as a result of the Doe Defendant(s)’ illegal activity.
Back to the abovementioned irony vis-a-vis Hehmeyer's vocal support of HFT anonymity:
Plaintiff does not know the identity of the Doe Defendant(s) because trading on the CME Globex platform is anonymous. For that reason, Plaintiff does not know the precise number of Doe Defendant(s). However, Plaintiff believes (based on the distinctive signature associated with the trading activity) that one party is likely responsible for most of the spoofing at issue in this Complaint. Moreover, allegations as to the Doe Defendants’ entry of orders are made on information and belief as the actual identity of the entity entering the orders is not known to HTG.
Actually it turns out there is no such thing as true HFT anonymity:
CME Group requires all CME Globex operators to identify themselves by the submission of a unique operator identification. Therefore, CBOT and/or CME Group are able to specifically identify the Doe Defendant(s), and Plaintiff will be able to obtain the Doe Defendant(s)’ identities through discovery. Plaintiff will request leave to amend this Complaint upon learning the identity of the Doe Defendant(s).
Actually, we know precisely HTG thinks the Doe Defendent is. Recall that it was back in August of last year when the same HTG accused rival Allston Trading, "of manipulating prices on CME Group Inc.’s exchange" vis spoofing - the same allegation that has resurfaced seven months later in this lawsuit.
Only back then it wasn't an actual lawsuit, and HTG stopped merely with arbitration: "HTG Capital Partners LLC filed an arbitration case against Allston with CME, saying it detected a pattern of canceled bids and offers meant to mislead other traders into moving prices favorably for Allston, according to the people, who asked not to be identified because the case is private. Exchanges prohibit creating the appearance of false demand and then canceling orders, a practice known as spoofing."
But... that's ironic, because all those defendants and lobby adherents to high frequency trading swear up and down the NYSE's brand new laser transmitter that they never, never spoof. After all that is clearly illegal. Well, apparently, they do. And now, thanks to one of the biggest insiders in the HFT industry, it is on the public record. Worse, as this case gets more prominent, and once the discovery trickles in, it is pretty much game over not only for Allston's spoofing strategy, but at that point the SEC, CFTC, and eve FBI will have no choice bu to finally crack down upon the industry, in a rerun of what happened in the Libor manipulation fiasco when one after another bank were exposed as manipulators of a grand scale.
And since an insider makes the allegations, it will be impossible to sweep them under the rug.
Incidentally, one must wonder just how bad things for HTG must have turned out, if the firm was ready to take this desperate, terminal step. Because after this, the party - as Virtu and BATS know it - is over. Sadly for both Virty and BATS, they never managed to go public in time. And now the party is almost over.
Back to the lawsuit, which goes in exquisite detail as to just how HFTs spoof (yes dear HFT-defending lobby: how you spoof everyone else):
The Doe Defendant(s) accomplished their spoofing activity by submitting Deceptive Orders into the CME Globex platform which they intended to cancel before execution. By submitting Deceptive Orders, the Doe Defendant(s) lured other market participants (like HTG) into selling contracts below, or buying contracts above, what would otherwise be the prevailing market price. These Deceptive Orders created the false appearance of market pressure in a certain direction (to either buy or sell). The Doe Defendant(s) then “flipped” the market by canceling their Deceptive Orders and virtually simultaneously entering an order in the opposite direction at the same price.
In this case, the Doe Defendant(s)’ spoofing is characterized by a unique signature: a well-defined pattern consisting of three phases. In the first phase, the Doe Defendant(s) would enter Deceptive Orders that they intended to cancel before execution (the “build-up” phase). These orders were deceptive because the Doe Defendant(s) intended to cancel the orders before they could be filled; they created the false appearance of market depth, which, in turn, caused unwitting market participants to react by entering buy or sell orders in the same direction as the false momentum. In the second phase, the Doe Defendant(s) canceled the Deceptive Orders they had entered during the build-up phase (i.e., the “cancel” phase). In the third phase, virtually simultaneous to the cancels, the Doe Defendant(s) would enter one or more orders in the opposite direction of the Deceptive Orders and at the same price, trading against the remaining available contracts at that price, thereby “flipping” the market (the “flip” phase).
It is this well-defined, three-phased pattern that demonstrates that the Doe Defendant(s)’ entered orders with the intent to cancel those orders before execution. Indeed, the frequency and speed with which the build-up, cancel and flip progression took place eliminates the possibility that this pattern was anything other than orchestrated. The Doe Defendant(s) could not have legitimately changed their mind as to the direction of the market so quickly, so often, and with such precision.
Visually this looks as follows:
It gets worse, because if enough people raise a stench about this HFT spoofing, there will certainly be a major criminal case out of it. Why? Because the security involved is the very lifeblood of the US - Treasurys, which the Doe Defendants "attacked."
Finally, the Doe Defendant(s) three-phased pattern appears to be a coordinated attack across the U.S. Treasury markets. The Doe Defendant(s) often implemented the three-phased pattern in multiple U.S. Treasury products at the same time. All of the above is strong evidence that the Doe Defendant(s) entered orders that they intended to cancel prior to execution.
It gets worse: according to HTG this "attack" is coordinated, wholesale assault on the most vital US security:
HTG has identified thousands of instances of illegal spoofing in which it was damaged in the CBOT five (5), ten (10) and thirty (30) year U.S. Treasury futures markets during the 2013 and 2014 calendar years. To put this in perspective, if the Doe Defendant(s) had profited by just one “tick” in the three examples shown above, the Doe Defendant(s) would have generated profits of $6,125, $17,718 and $17,906 respectively.
There is much more in the full lawsuit (link), and we encourage readers to go through it as this may well be the landmark case that topples the entire house of manipulated, high frequency cards down.
As for the future of HFTs, we promise not to shed many tears: as readers know, our crusade since 2009 has been to uproot and destroy any and every HFT parasite in existence. And since it became abundantly clear that the regulators are as corrupt and complicit in the crimes of the HFTs as the actual perpetrators, we became resigned that we would have to wait until the next, and truly historic, market crash which the Fed would try to pin on the HFTs, in the process purging the market of its biggest structural cancer.
Now, however, it appears we won't have even that long to wait: because the parasites are turning on other parasites, and the only thing missing is for the weakest link to spill all they know to the next Michael Lewis, or the next Ferdinand Pecora, in the process finally bringing the hammer of creative destruction upon the vacuum tubes.
We for one, have our popcorn ready.
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and who is even the tiniest bit surprised...?
<nice writeup, btw, tylers, but i suspect somebody will decide that this is better settled quietly in the back room with a minimum of noise, else volume will drop tenfold, and the appearance of liquidity will frighteningly vanish....and that scares the muppets.>
So a firm that criminally manipulates securities is going to sue another firm that criminally manipulates securities?
Are we going to have mob lawsuits now?
Gang lawsuits? Crips and bloods suing each other over "stolen territory"?
embrace the sdr tyranny !
The first Russian tanks crossed the border a little after 2 in the afternoon on Feb 14th 2016. After taking severe but tactical losses, a NATO counter drove back across the frontier 8 days later. We think the russian missiles left their tubes first, but the Chinese didn't become involved until 2 days later. 13 days after the first tanks crossed the border, 5 billion people lay dead and another 2 billion had no power. More than another half a billion died through the first winter. Deep in a concrete bunker under Staten Island ALGO 54$%257Z knew nothing of this. While the world went dark, the system lived in a sealed concrete bunker - faraday caged, solar / battery / and mini-nuke powered. Noting an opportunity as vast parts of it's e-world snapped off, ALGO 54$%257Z pounced, cornering positions, placing orders and waited the long, loong half a millionth of a second between setting the positions presented by this stunning lack in volume, and the moment it's competitors / prey reacted. Crippled as they were, they were easy marks. Down in the dark ALGO 54$%257Z was now the fastest machine alive. Screaming ahead of it's remaining prey - so few these days - and silently blinking, the system continued to enact it's protocols.
Outside, humanity flickered, wavered . . . and sparked back to life. Years, then a decade passed. Eventually, a team went looking into the guts of the old pre-ware systems, looking for clues as to what happened. What they found was carnage. ALGOS lying in bloody pools, smashed and split apart, run ragged and run through. ALGO 54$%257Z had won. ALGO 54$%257Z had all the money that had ever been created. Capitalism had triumphed.
American mark on humanity... The US forces just bombed the children's hospital in Syria.
http://varjag-2007.livejournal.com/7969369.html
No words...
We may have awarded that Peace Prize.....a tad hastily.
Perhaps a 2 week track record wasn't long enough.
Consequences bitches!
HFT is just a program, i.e. a set of instructions. There is nothing magical around it. It's something like: DO (this); DO (this); IF (this) DO (this) IFNOT DO (that).
It's more or less the same thing you could tell a person to do. Joe, if the price is this buy, if the price is that sell, if the price doesn't move stare at Lucy's ass. There is not magical manipulations that a program can do that a person couldn't. Ban HFT and manipulation will be happening still (as happened in the past) just at a much MUCH slower pace.
The problem is no HFT, the problem is the rules of the game. Put a significant price for cancelling orders, e.g. you cancel 100 orders in a second you pay $10,000 (not saying this will be a good rule, that should be studied in some technical committee), and you get rid of the problem (quote stuffing, that is what this article is all about).
I'm really sorry to break it to you guys, but HFT is NOT going away, Technology is here to stay. You get rid of HFT, you lose competitiveness with other exchanges. And the SEC boys may be corrupt, but stupids they ain't.
And neither is the insanity going away, now survival -vs- stupid, that interpretative.
How many people in here have so much money that they would ever need to care about HFT?
https://www.youtube.com/watch?v=HUWP_Q2MNS0
Multi - you are right, it is a program running that says do this and do that, if this then that, also known as an algorithm, a set of instructions. I also agree program trading is here and isn't going anywhere. However you are wrong to think a person at home can simply write a program or trade the way these parasites do. These wrong doers aren't simply writing a program to trade, they are writing a program to manipulate and trade on inside info. They are co-located and pay big to be, because they want the info before others and want to act before others. Also the deals with exchanges to sell client order info is going on with these guys, not something the average joe blow is going to get his hands on. They want all this info so they can front run orders just like how the meat head in the pit back in the old days would get a clients order over the phone and throw a few of his own orders in front of his client, then execute the client trades. That was wrong then, and it's wrong to get a computer to do the stealing for you now. Most HFT companies, like most pit guys, couldn't actually trade to save their own life.
I agree the rules need to be changed to close down these bugs in our market. True if you ban HFT manipulation in one way, they will try to steal another way, that's human nature. However, that doesn't mean you don't pursue the wrong happening just because it's not going to make the market a perfect arena that even god would trade in. The funny thing is though, most of the rules in place would probably apply to HFT's wrong doing. Information needs to be released in a way that everyone has it at the same time. Co-locating is criminal, because we know why they are there. Institutions aren't technically allowed to frontrun their clients orders, but exchanges sell the info to let someone else do it and the exchange takes a fee for the info. Both are profiting from illegal information. Same rule as in the old days, it just has to be pursued by the SEC. Like con scams, a con today uses the same techniques as a con 200 years ago, They just use different tools to execute the crime.
I don't think anyone on ZeroHedge thinks or expects the SEC to outlaw the use of a computer to trade securities. lol Computers don't frontrun and spoof, it's the company writing the program.
Gen Turgidson was right, we could have had a mine shaft gap.
(Geo. ©. Scott in Dr. Strangelove.)
LOL Tyler thinks this will happen before the big crash. How long until this goes to trial? Thies is just step 1 of the cover up and means the crash is SOON.
Crips and Bloods are not as evil as these groups
start of the Butlerian Jihad ?
Whoever wins this will still be a parasite.
Fuck them and the spoofing horse they rode in on... I remember clearly the cocksuckers front running my trades when I was day trading. They deserve all the shit they get and some
Same game, different era. When I traded options in the late 80's at a local Charles Schwab the quotron was delayed by 15 minutes so the specialists could front run everything. Now the specialists / market makers have been replaced by AI.
Exactly. When I hear HFT ciomplains I can't stop thinking of old farts complaining because they lost their take in the action.
'There is no honor among thieves' As anticipated, the dragon starts eating it's own tail and cannibalizing itself. My crocodile tears flow...LMAO.
"spoofing": the act of using credit (debt) to fool the denizen of a nation into believing they're wealthy while selling their jobs (income) off to other nations by treasury note sales.
"collapse": the act that comes after spoofing - see Ludwig Von Mises: "Credit expansion"
"revolution": when the spoofed denizen of a collapse realize they have just become part of a new third world.
if you ask me, the boss man took some terrible losses, got drunk with his lawyer (aka. parasite) who saw a six figure billing possibility and went to town...
this has nothing to do with trading and everything to do with parasites... sorry i mean lawyers....
After being fired from my old job 8 months ago, i've had luck to learn about this great company online that was a lifesaver for me... They offer online home-based work. My last month payment after working with them for 4 months was 16ooo bucks... Great thing about it was that only requirement for the job is basic typing and reliable internet...If you think this could be for you then find out more here...
www.globe-report.com
the Doe Defendant(s) would have generated profits of $6,125, $17,718 and $17,906 respectively.
Oh the horrrrroooorrrsssss!!!!!!!!!!!!!!! Jamie Dimon blows that much with one fart.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Sounds like it's about time for a few more Nailguns Surprise.
Line 64 error
Computational reset...test, abort
<enter>
Please insert data file now.
Officer, he stole my pot!
Oh, that's not funny now. Hmmm. That probably really a call in Colorado.
A lawyers gotta cost more than they allege losing.
We're front running and the market is still moving against us!
THIS IS AGAINST THE RULES!
TURN OFF YOUR COMPUTERS NOW!
ALL COMPUTERS! YES ALL COMPUTERS ARE TO BE TURNED OFF NOWWWWWWWWWWWWW!!!!!!
You know that front run thingy? You know the hard left, it only worked for one guy, the rest who would try, would be doomed, yeah how's you like that?? Took all those people down the river and watched um jump, now who wants to turn that off???
This is why cartels never work in the long run. Someone always winds up wanting more than their share.
Zero Parasites.
On a long enough timeline the probability of outlasting your host organism drops to zero.
That rather depends on what your intentions are.
https://www.youtube.com/watch?v=MgyozhxgCv4
Google ad using HFT seconds search.
http://www.mystocktradingbiz.com/?gclid=CjwKEAjw8oSoBRCss4qDrP3Y7yUSJACKumZ9UZ5IHGMC5cEyfSy4oU5NZ-GtLlYQ51rHajGhx0QEsxoCaSXw_wcB
Quants are cunts, oops meant Obama supporters, next DNC leg for 2016.
This administritration is knee deep in fraud. The dam is about to break wide open.
"And since an insider makes the allegations, it will be impossible to sweep them under the rug."
Think so, huh?
Bring back Glass Steagall and ditch decimalized trading. 90% of your problems go away. So do most of the exchange volumes. But exchanges USED TO BE RUN as market 'utilities', not as for-profit institutions. And I'm not talking about 100 years ago, either.
It may be heresy to say taking a technological step back is 'progress', but in this case it would be. Which is why it will never happen.
Does this mean the (NFL) National Fag League can't claim themselves as a non-profit organisation under ESPN broadcasting contracts with TV copyright infringements? Progressives will go after the last breath of a host before they kill each other.
Not For Long, he'll think up another crazy phrase and run wit it.
TURN THOSE MACHINES BACK ON!!!!!
www.youtube.com/watch?v=dKYM62qSA_0
They can file all the lawsuits they want. NOTHING WILL HAPPEN.
litigation until expiration
So what about my PM being manipulated fdaily. Will you reiburse my losses wtf kinda worl are we living in
So much for the theory of honor among thieves.
Wait for the new CDC HFT superbug outbursts skybox themselves into Net Neutrality. These assholes have no idea about the internet. It will be fun to watch the US Government meltdown, with panic ensued in finding cankles emails on a cloud server, backed up on Lois Leaners IRS HD.
/SARC
"As for the future of HFTs, we promise not to shed many tears: as readers know, our crusade since 2009 has been to uproot and destroy any and every HFT parasite in existence."
Aaaaannnd this is why i've been here for years....the kid who stole code from Goldman Sachs back in the day is how I stumbled upon ZH. And who don't like it bitchez!
Sergey Aleynikov http://www.aleynikov.org/
“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways.”
Freaking priceless...
Banks are going to shake down their last asset to met the stress test. The dumbfucks who make carnival risk investments are going to point the finger at each other. Bill Clinton will never be mentioned in his wifes crashed HD account on signing the Glass-Steagall Act. Guess the Clintons don't know about forensic computer experts who can turn her into a flaming ball of shit.
http://www.investopedia.com/terms/g/glass_steagall_act.asp
Wasn't that the plot of Superman III?
Yup, I would think so, the flow from the muppet pickpocketing must be drying up.
At this point, I could also imagine that this recent relentless straight down in the Euro below 1.10 is largely a squeeze on the typical bottom pickers' accounts. It just makes more sense than some "market" that is trying to sell the more Euros the lower it goes.
Does this accusation include Aug/Sep 2013 when Bill Gross said something important sounding and USTs started selling off hard? (Typical charade.)
I think there was clearly manipulation going on with that relentless selling going into the September FOMC where they of course announced NO TAPER and treasuries spiked in an instant.
I think it was the same John Doe doing that. And I think that's the same John Doe who did the things on Oct 15 2014.
I have an outrageous theory about what happened that day. Posted it recently in another thread, ima plug it here:
The Oct 15 action was a kill job market manipulation at the height of the ebola craze (which also speaks about the ebola thing).
It happened in concert with USD/JPY (correlated with UST yields, stocks), oil and stock indices.
All correlated, to smash stocks down to the channel floor to be picked up by the insiders for the runup that was coming with the unexpected BoJ action in the pipeline (aka the Halloween Yen Massacre).
The Bullard soundbite then kicked it off.
https://pbs.twimg.com/media/B-zcLWBUEAAAlF4.png:large
NanexLLC's twitter feed posted metrics that in his read showed the same kind of HFT quote cancellation action that was also prevalent in early Feb 2014 when the S&P 500 made the low for the year.
I think he even said, that if it's the same thing going on again, we're in for a stock market surge. And now we see it turned out to be the case.
He also reported significant fake quote activity in the Russel 2000 (it got obliterated in October) in the afternoon just before it turned to rip into the close. This is also indicative of some kind of shakeout algo action.
Soon to be printed in bold letters on every fund prospectus:
WARNING FROM THE SECURITIES AND EXCHANGE COMMISSIONER: Research has shown that HFT is to your investments what cigarettes are to your health. HFT may cause cause injury or death to your 401k or investment portfolio. Hell, they even got lasers and shit. In fact, if you’re still trading in the same markets with these skimmers you might as well smoke em if ya got em.
This has truly become a clusterfuck nation. Turn off the lights.
We know who the Doe Defendants are.
Waddell And Reed.
One nitpick:
"Apres moi, le deluge." was spoken by Louis XV, not Louis XIV.
Or maybe Madame Pompadour, his mistress.
The inner Reset means forgiveness of all debts, physical, energetic, emotional and spiritual.
It means forgiveness to yourself and others.
It will consequentially mean financial debt forgiveness when a critical mass of people realizes that we owe banksters nothing.
It will consequentially mean the end of karma when a critical mass of people realizes that we spiritually owe Archons, gurus or God nothing:
http://americankabuki.blogspot.com/2015/03/why-should-i-continue-to-pay.html
Some people find it difficult forgiving the Cabal.
True forgiveness to the Cabal can happen only after they are stopped in what they are doing.
Before that, you can use your anger constructively by assisting in the planetary liberation process.
Forgiving the Cabal will be easier if you understand that they are acting out of trauma they themselves have received in the past.
After they are stopped, violence will solve nothing.
Those who are unredeemable will go to the Galactic Central Sun for restructuring and the rest will feel their conscience giving them a really hard time when they finally realize what they have done:
http://2012portal.blogspot.com/2012/05/removing-cabal-normal-0.html
Forgiveness is easy if you understand that everybody on this planet had some really traumatic experiences in this or any of the previous lifetimes.
Each individual reacts upon those experiences in a unique way.
To release the past and learn from it is the key to the new reality.
We need to start focusing on how to make things work in the new society.
Forgiveness will open a flow of cosmic Love upon the surface of this planet and this energy is exactly what the advanced extraterrestrial races need to anchor their ships here after the First Contact.
On March 17th, at the last Uranus Pluto square, you can meditate in your own way and dedicate that day to forgive as much as possible and thus do an inner Reset. We will not be having any global activations on that day, inner Reset happens in silence in the innermost chamber of your Heart. This marks the completion of this Window of Opportunity. The progress of the Light forces towards the surface of the planet is such that no further Windows of Opportunity are needed to trigger the Event, although portal activations on certain dates may still be needed. Since that day, we will actually be in one huge Window of Opportunity that will converge into the Event when the time is right. Anyway, complexity wave analysis shows that timeframe between mid-March and the end of May is one of the times in the human history with most potential. The Breakthrough is near!China-IMF talks underway to endorse yuan as global reserve currency
http://thebricspost.com/china-imf-talks-underway-to-endorse-yuan-as-glob...
Hey Federal Reserve PhDs,
Stuff it!
ZH & Tyler, vindicated again....Bravo sirs!
Yuck it up......CNN and CNBC are plotting their revenge as we speak.
Vacuum tubes?
knock me over with a feather! you mean to tell me that there's NO HONOR AMONGST THIEVES?! What is the world coming to when you have to sue to out-greedy the other ripoff artists.
all of thse problems could be fixed if they would just implement a rule that EVERY ORDER IS GOOD FOR A MINIMUM OF 1-MINUTE BEFORE IT CAN BE WITHDRAWN... of course that will never happen 'til the nailguns run out of ammo.
I think I saw one of them the other night. It crawled out of my usb port and something that looked just like it ran out fought with it and dragged it back into the computer. It could have been those things they have on Q99X3 but I pulled the covers over my head and went back to sleep.
That Quantitiy Ask column looks a little sexy don't ya think. Nice long oval.
Pachelbel - Canon in D
Turn the lights out on this collective progressive gay metrosexual advancing, racial dividing administration.
PS: Mrs Atomizer can rattle this off on our home piano.. winks.
You blame the puppets? As is the plan.
".. the next, and truly historic, market crash which the Fed would try to pin on the HFTs, ... " Misdirection at its finest.
So, remind me why the Fed is assumed should be a central player here?
Delete the Fed.
And speaking about parasites.:
http://www.intifada-palestine.com/2015/03/aipac-busting-up-peace-efforts/
The darn shame of this situation is, there is no other place for real news other than in the foreign press. No longer can the US govt sponsored lame stream media be trusted to tell the truth about ANYTHING! The sad reality is, there is NO TRUTH in western media, rather it has turned into the biggest lying scam propaganda the world has ever seen. Spoon fed filth for the ignorant at best. If one wants truth, a good food for the heart, they have to go to the other countries for real truth-news in their media.
Oh look, here is some truth now.:
http://rt.com/usa/240241-us-confidence-government-low/
If the sums stolen are modest, they will see jail time. If the sums stolen are substantial, there is a place at the table in Washington.
HFT programmers were wearing Hillary prism eye glassware, most programmers were feed morse code from a cell block. Project objective was blurred by Google glasses and NSA infrastructure budget set backs.
/sarc
I pretty much *never* trade stocks (working in startups is enough risk for me), but have for years been interested in reading the comments here on ZH. Simple question for all the day traders, stock gurus, gold bugs and others here: why are those engaging in HFT-based market manipulation considered to be any better or worse than those who manipulate markets *without* HFT?
From the perspective of the 99% (I believe we're called 'muppets'), day traders, investment advisors and basically anyone who becomes techno-financially literate unlike us *is* manipulating the market just as these HFT folks are doing, and probably technically in a roughly similar manner.
Where's the line drawn? Where should the line be drawn?
A human (on the phone, in a trading pit or at his terminal) who tries to manipulate a market with spoof bids and offers runs the risk of having his bluff called by other market participants and acquiring a position he did not want. A super fast also is too quick at pulling misleading orders from the order book, it runs no risk of being hit on its bids or offers, if you try the orders evaporate. So, a well dialled in algo can walk markets up or down with blocks of bids and offers moving in either direction. This tempts the momentum / price moving algos to position for further similar moves. None of it has been real for 5 or 6 years +. Soon we will find out if owning a rogue trader algorithm is threatenings to the owners liberty. Most here already know the answer - it depends who the owner is!
Shorebreak, really? You and all your "techno-financially literate" friends are deploying $40 million into specific stocks in the last second of the trade days? You are making up over 70 percent of the total Nasdaq trading volume of the affected stocks in the fraction of a second before the close of almost every trading day, in order to spoof the stock price?
Are you then implemented additional algorithms known as “Collars” to ensure that your orders receive priority over all other orders when trading these imbalances? Are you jumping in line so you can insure your orders are at least partially filled more than 98 percent of the time?
Are you making near-simultaneous trades on several different exchanges and raking in profits by taking advantage of a fraction of a second delay in one of the exchange's computing systems? Are you purchasing real estate to position your computers as close as physically possible to an exchange in order to maximize these exploits?
Unless you are able to place, cancel, spoof, and profit off of millions of dollars worth of trades in less than a full second, then NO SIR, you and your day traders and investment advisers are NOT anything like an HFT algo.
And as Reload pointed out, they do it all with little or no risk, the exact opposite of what would happen if you attempted it!
You ask where the "line" should be drawn? FRAUD. The line should have been drawn at outright FRAUD. But of course it's waaaay to late for all that now. The entire system is totally fraud-tastic.
^^^ I wish this was a joke.. It's not!^^^
These fuckers need to be shot or hung for treason.
Why doesn''t the NSA pull Hillary Clinton phone records? Are US taxpayers just funding a blacklisted alphabet soup agency with a appoint czar thru Obama?
Question....
...... (at least in a hypothetical legal system in which bankers actually go to jail)........
two countries did it:
1. Austria
2. Iceland
third tries hard: Spain.
I just don't get why ZeroHedge hasn't received the PULITZER prize yet.
This article finally made me donate to ZH. Well done guys!
ZH wouldn't want it. The Pulitzers are reserved for purveyors of recycled CIA disinfo and Wall Street press releases.
The closest thing real journalists ever get to compliments on a job well done are lawsuits for libel and attempts of secret police forces on their lives.
The Reluctant Algorith's response:
void main(){
char* s;
char** w;
char ch;
do{
clrscr();
gotoxy(10,1);
printf("Enter a string :");
gets(s);
gotoxy(10,2);
printf("\nNumber of words :%d",strword_p(s,w));
gotoxy(10,24);
printf(" Continue(y/n)?");
ch=getch();
} while (ch=='y' || ch=='Y');
}
int strword_p(char *s,char **w){
int is_space=0,
i=0,
word_counter=0,
j=0,
is_printed=0,
frequency=0;
while (*(s+i)!='\0'){
if (*(s+i)==' ' ||
*(s+i)==',' ||
*(s+i)=='.' ||
*(s+i)==':'){
if (is_space==0){
*(*(w+word_counter)+j)='\0';
word_counter++;
is_space=1;
j=0;
}
}
else{
*(*(w+word_counter)+j)=*(s+i);
j++;
is_space=0;
}
i++;
}
if (is_space==0){
*(*(w+word_counter)+j)='\0';
word_counter++;
}
for(j=0;j<word_counter;j++){
frequency=0;
is_printed=0;
for(i=0;i<word_counter;i++){
if (strcmp(w[i],w[j])==0){
frequency++;
if (j<i)
is_printed=1;
}
}
if (!is_printed)
printf("\n Word %d : %s ,frequency->%d",j+1,w[j],frequency);
}
printf("\n");
return word_counter;
}
Wow. Regarding parasites, looks like public unions have competition.
'
'
'
If everybody is making money off the stock market, especially the HFT'ers, then who's on the losing side of the trades?
•?•
V-V
Treasuries, money market, gold, bank deposits, CDs
Reminds me of the ancient drawing of the snake devouring himself.
White collar crime pays and it pays well. Attorneys General, your local DA, the U.S. Marshalls, all of these folks have bank/financials in their public retirement accounts so they won't go after the hand that feeds them.
We complain about false fiings, forged documents used against people in foreclosures. There is no redress so...now we file our own lien releases, satisfactions of mortgages. Let's see if the banksters want to sue for that.
This article reminds me that if you can't beat them, join them. When they try to sue they expose their own crimes!
Why did this remind me of the Sting...
Doyle Lonnegan: What was I supposed to do - call him for cheating better than me, in front of the others?
Well HTG might be better off doing a class action lawsuit and letting others join in. The CME should be forced to give up counterparty names when transactions occur, back in the electronic infancy the CBOT project a system had an audit trail for every trade, badges and acronyms included, so when I bought 100 five year futures, my badge and clearing firm number was matched with whomever was on the other side of the trade and both parties information was shown instantaneous on the "ticker", now a very simple question for everyone should be, why did the Cme do away with this, and why do they protect perpetrators, when their job as an exchange is to protect its participants? The cftc and sec have failed in their oversight of the exchanges, I wish HTG luck and do hope for a precedent to be set because if people realized how bad the financial markets have become rigged, well they shouldn't be surprised when they don't get what they pay for.
Bacteriophage are the most abundant organisms in nature. Bacteriophage is a virus that attacks bacteria.
Next up, lawsuit stuffing.
One HFT sues another 30,000 times in one second, then pulls all claims and frontruns the defendent by admitting guilt in the countersuit.
No fair, you cheated better than I did!
https://www.youtube.com/watch?v=sSfglyoJNA4
Another great article, you're on a roll lately Tyler.
When they can no longer exist on it's host - we, the sheeple - they will begin to attempt to eat one another. We hosts have, after all, nothing left for them. TPTB have taken it all. Let the HFT cannabalism commence!
HFTs are about to be severely smacked and reduced in number. By about 60% and with some fairly gnarly little beasties manning the binary forts.
This kind of lawsuit is irrelevant, it's companies knowing what's coming and seeking the last gasp alpha (payouts). And yes, it's priced in: GS etc have already done due diligence on the next big thing.
When ZH posted this little animation from Nanex, it made us sing:
https://www.youtube.com/watch?v=rB5jJuMP84E
It's like the Cern tier 0 model of traffic.
Why stop here? This was a great article by the way as well. Code parasites make it bad for all of us. We let's now ad on News Rigging too as if there's anything to be rigged, they'll do it.
The NYT ran an article a few days ago about the amount of news that is written by bots today and there's a lot of it and all you theoretically need is one journalist and then the rest can assign a bot writer or journobot to rewrite with the capability of avoiding all plagiarism from the original article. Have you ever noticed the similarities we see out there. Both Pro Publica and Forbes awhile back announced using bots to write some of their material and it's only increasing and the journalists have to play the "click bait" game.
I wrote an opinion piece on this as now the WSJ, NYT, WPost and a few others have invested in a start up company that will charge you 20 cents to read some of their material, so are we now ready to have to pay for bot written material? It sounds like it and you have to give your credit card to do this, which means all the companies that sell your transactions will have more data to sell about you and know a bit more about your behavior, based on what you "pay" to read with your credit card. The data selling business is a $180 billion dollar a year business. There's a good video at the post too with Computer Scientist Jaron Lanier, worth watching as he sees a lot of the manipulation going on, and he talks about Wall Street as well in this case.
http://ducknetweb.blogspot.com/2015/03/major-us-newspapers-sign-up-and-invest.html
So coming back around on the "rig" portion of this, with a journobot with all kinds of parameters, just like trading software, have the ability to react and read the market? I think no doubt that it's been built in along the line and based on what's occurring in the markets, the news bots can now react to the stock bots. So if there' some big rush, correlation or other bit HFT algos running out there, the news bots can recognize and react to those and a new story can be specifically set to publish when activities demand such to do a little rigging to sway some investors.
Anytime anything can be rigged and there's big money to be made, people will rig. So again bad enough we have the credit card and data seller aspect to all of this at the start, but add in these news Journobots now reading market bots and establishing a time element to dump their good out there with publishing. Who knows, maybe there's some former HFT Quants working on the design of the journobots?
So add this on to the current parasite lawsuits and now what? I did a post a while back about a very capable Journobot. The developer has 100k books for sale on Amazon that he used his bot to write. Of course the bot does news too, and those are a piece of cake compared to doing a book. Video number two at this post "Quantitated Justifications for things not true" tell all about the very powerful Bot and I might add the NYT article also referenced the Bot called "Long Tail". He even does videos with it and it's almost ugly when you see him make cartoon characters out of our newscasters and you wonder "is this next"...geeez..hope not, but the powerful algorithms to write material is there.
http://ducknetweb.blogspot.com/2013/12/quantitated-justification-for-believing.html
We all know how algorithms as software, data and queries, build on themselves so I see this as just the next rigging tool to rig news as there's nothing stopping them out there at all. We talk about "quote stuffing" all the time, so perhaps the next rig to sway markets now is "new stuffing" as again the technology is there to do it. Nanex and I were chatting about this months ago and he's very much on top of what goes on with news feeds and he felt the same way, he a code writer.
So when the HFTs are not stuffing quotes, they can resort to stuffing news now to manipulate. This is over all sad what is happening to "real" journalism too and makes blogs much more important as the news rigging falls into place. How many will really use their credit card and allow a 20 cent charge to their credit card? That remains to be seen and the papers don't have ton of choices as their revenue keeps sinking.
If these selfish cash rich, stock buy back companies would just advertise a bit more and support the papers, maybe it wouldn't be this bad but they don't and now they are perhaps going to bank on journobots as one more way to inflate the price of their stocks?
Standing, and applauding, seriously great article Tyler. This is the type of post that originally drew me to this blog. Sadly much of my time lately has been "debting" issues related to Russia.
Future story idea, similar issues exst re MBS, CDO, CDO2, connected to private label, and GSE, and on a much grande scale, [albeit in a different way] which i see and react to, daily
Speaking as an attorney who regularly litigates in the fed courts, you cannot discover shit against
Does. In order to engage in productive discovery you have to have an opponent. They will need ti amend now to name the exchanges as defendents to, in turn, discover the name of the HFTs.
"The end of HFT." Until the next insider scam on Wall St takes it's place.
As long as there is a Goldman Sachs, there will be bloodsuckers who create nothing, but skim off a steady percentage of the nations's wealth by interposing themselves in between the market and the market "participants."
It's how casinos make money. But people have a hard time accepting that the American stock markets are casinos.