NY Fed's "Plunge Protection Team" Starts Chicago Trading Floor "In Case Of Disaster Or Other Eventuality"

Tyler Durden's picture

We have known for quite some time now that the NY Fed's market group, aka the Plunge Protection Team, is opening a second office in the HFT-capital, Chicago.

Recall from September:

The Markets Group at the Federal Reserve Bank of New York manages the size and composition of the Federal Reserve System’s balance sheet consistent with the directives and the authorization of the Federal Open Market Committee (FOMC), supports debt issuance and debt management on behalf of the U.S. Treasury, provides foreign exchange services to the U.S. Treasury and provides account services to foreign central banks, international agencies and U.S. government agencies.

 

Markets Group is establishing a presence at the Federal Reserve Bank of Chicago and has openings for both experienced professionals and recent graduates.

What was not known is what is the official reasoning behind the Fed's move to be even closer to its Citadel executions arm. Overnight, courtesy of Reuters we found that the "The New York branch of the U.S. Federal Reserve, wary that a natural disaster or other eventuality could shut down its market operations as it approaches an interest rate hike, has added staff and bulked up its satellite office in Chicago."

Reuters adds some other details we already also know:

Some market technicians have transferred from New York and others were hired at the office housed in the Chicago Fed, according to several people familiar with the build-out that began about two years ago, after Hurricane Sandy struck Manhattan. 

 

Officials believe the Chicago staffers can now handle all of the market operations that are done daily out of the New York Fed, which is the U.S. central bank's main conduit to Wall Street.

 

The satellite office in the Midwest readies the New York Fed for perhaps the most delicate U.S. interest-rate hike ever. With rates having been near zero for more than six years, and markets flooded with reserves, the Fed will rely on an array of new tools to help it tighten policy, likely later this year. 

 

Two of the sources, which included market participants and Fed officials and who spoke under condition of anonymity, said the Chicago office was partly protection against a possible cyber attack against the New York Fed. In February, Fed Chair Janet Yellen told a congressional panel the central bank is addressing "ever-escalating (cyber) threats to our operations."

 

But the main reason for the build-out 700 miles (1,127 kilometers) to the west appeared to be the need to have staff ready at all times in case of disaster.

 

A spokeswoman for the New York Fed declined to comment. The Chicago Fed bank deferred to its New York counterpart.

...

One source estimated there were between 20-30 New York employees at the Chicago Fed, saying more were being recruited.

As we further revealed back in September, the people joining the Chicago buildout of the PPT have very unique skillsets:

As to just what specific skills the NY Fed is seeking as it builds out its HFT practice on the ground in Chicago, here are the two indicated positions with which the expansion is set to start:

Markets Group - Policy & Markets Analysis Associate – Cross Market Monitoring

 

Primary Location: IL-Chicago
Full-time / Part-time:  Full-time
Employee Status:  Regular
Overtime Status:  Exempt
Job Type:  Recent Graduate
Travel:  Yes, 5 % of the Time
Shift:  Day Job
Job Sensitivity Not Evaluated

Job Title: Policy & Markets Analysis Associate – Cross Market Monitoring
Group:  Markets Group
Location: Chicago, IL
Start Date: Summer 2015
 
The Markets Group at the Federal Reserve Bank of New York consists of multiple business areas that fulfill a range of responsibilities, from planning and executing open market operations, monitoring and analyzing financial market developments, to managing foreign customer accounts.

 

Through its analytical and operational areas, the Markets Group:

  • Manages the size and composition of the Federal Reserve System's balance sheet consistent with the directives and the authorization of the Federal Open Market Committee (FOMC);
  • Monitors and analyzes financial market developments for key stakeholders and policymakers within the Federal Reserve System;
  • Monitors and analyzes developments related to financial stability;
  • Supports debt issuance and debt management on behalf of the U.S. Treasury;
  • Provides foreign exchange services to the U.S. Treasury; and
  • Provides account services to foreign central banks, international agencies, and U.S. government agencies.

RESPONSIBILITIES:

  • Monitors, analyzes and reports to policy makers on global financial market developments:
    • Tracks intra-day and longer-term global asset price movements;
    • Interfaces with market participants to obtain context for asset price movements;
    • Analyzes findings and identifies themes relevant to the monetary policy process;
    • Prepares detailed written analysis and presents oral briefings on market developments to officials in the Federal Reserve, the Treasury, and other institutions;
    • Relates developments in financial markets to issues pertaining to financial stability; and
    • Assumes responsibility over time as a Markets Group specialist for a specific aspect of financial markets.
  • Plans and executes transactions in foreign exchange or fixed income markets on behalf of the U.S. monetary authorities, foreign central banks, and other customers
  • Participates in projects within the Markets Group related to increasing the effectiveness and efficiency of transactional business areas
  • Performs related duties as required

REQUIREMENTS:

  • Master’s degree in Business Administration, Economics, or Public Policy and a minimum of one year relevant work experience in an analytical capacity related to global financial markets
  • We will consider recent graduates/current students and those with up to 5 years of relevant work experience
  • Demonstrated analytical skills, including knowledge of financial instruments and financial market structure, macroeconomic theory and monetary policy
  • Proven ability to provide concise, articulate and insightful economic analysis in written and verbal form.
  • Ability to analyze complex market issues, make sound decisions and respond under pressure
  • Ability to work productively in a high-performance team atmosphere and as an independent analyst
  • Must adhere to area specific financial disclosure requirements

As well as a European-focused plunge protector:

Policy & Market Associate - Chicago-237531

 

Primary Location: IL-Chicago
Full-time / Part-time: Full-time
Employee Status: Regular
Overtime Status: Exempt
Job Type: Experienced
Travel: Yes, 10 % of the Time
Shift Day: Job

 

The Markets Group at the Federal Reserve Bank of New York is responsible for the implementation of monetary and foreign exchange policy, providing payments and custody services to foreign central banks, and auctioning and issuing Treasury debt as the fiscal agent for the U.S. Treasury.  As part of these duties, the Market Operations Monitoring and Analysis Function (MOMA) within the Markets Group executes transactions in the open market and conducts detailed analysis of financial market developments in support of the monetary policy decision-making process.

 

The International Market (IM) Directorate within MOMA is responsible for providing in-depth analysis of global financial market developments and international policy matters that contributes directly to the broader analytical work conducted by the Markets Group specifically and the Federal Reserve System more broadly. The Directorate also has many operational responsibilities, including executing U.S. foreign exchange policy and foreign exchange customer transactions, managing the U.S. foreign exchange reserves, and managing foreign exchange swap lines with foreign central banks.

 

The IM Directorate is currently seeking a Policy and Markets Associate to produce high quality analysis on global policy and financial market developments that contributes directly to the broader analytical work conducted by the Markets Group specifically and Federal Reserve System more broadly.  This position will focus specifically on the euro area, but may include some coverage for other regions.  Applicants should be familiar with matters relating to international economic policy frameworks and global financial markets analysis, and should be able to develop and convey their views in a concise manner, both verbally and in writing, to senior policy makers throughout the Federal Reserve System and U.S. Treasury.  The candidate will also be expected to participate in the myriad of operations under the Directorate’s purview.

 

Responsibilities

  • Prepare analysis of global financial market developments with a focus on the euro area.
  • Convey and develop views to senior policy makers on such topics through daily and/or weekly written and/or oral briefings.
  • Collaborate with other Groups within the Federal Reserve Bank as well as other Federal Reserve Banks within the system as well as the U.S. Treasury in related areas.
  • Collaborate with other central banks on relevant policy initiatives, information exchange on financial markets, domestic policy developments and reserve management.
  • Remain current on relevant economic and finance literature and financial markets and developments pertaining to monetary and foreign exchange policy frameworks and approaches.
  • Develop contacts within the global financial community, including with investment banks, central banks and other policy institutions such as the U.S. Treasury and IMF.
  • Learn and conduct the broad range of the Directorate’s operations, including related to foreign reserves management, foreign exchange transaction and foreign exchange swaps.

Requirements

  • Post-graduate degree in economics, finance or a related field.
  • Minimum of 3 years’ experience analyzing financial market developments and/or international policy issues.
  • Strong written and oral communication skills that will enable the candidate to convey their views to senior policy makers in a clear, concise and consistent manner.
  • Strong interpersonal skills to interact and collaborate effectively with peers, subordinates, senior management and external parties.
  • Operational experience not required, but candidate should have strong attention to detail.
  • Ability to represent effectively the business area and the Bank, as appropriate, on issues related to global financial markets.

So there it is: if and when there is a "natural disaster or other eventuality" at Liberty 33 (a disaster which will hopefully not leave the several thousand tons of foreign gold located 90 feet below street level at the NY Fed unguarded), or frankly at any other moment as well, the Fed's grip on the markets will be solidified even more, as the Chicago branch of the NY Fed loops directly into the microwave and laser feeds used by HFTs to break momentum at key selling inflection points (and should selling persist, exchanges will merely shut down).

At this point one wonders why not just have the Fed announce what the closing price for any given day will be and do away with the pretense of "markets" altogether?

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BuddyEffed's picture

Did this article from yesterday used to have a much longer list of comments?

 

http://www.zerohedge.com/news/2015-04-14/1000-mile-stretch-pacific-ocean...’t-know

If so, why was there a change?

I'm even having trouble with the above cut and paste link.  Currently you can still page back to yesterday, April 14 and find it and open it that way.

Here is the full title : 

A 1,000 Mile Stretch Of The Pacific Ocean Has Heated Up Several Degrees And Scientists Don’t Know Why

IndyPat's picture

It sure did.

Comments went down the memory hole. That's not the only post it's happened in, either.

BuddyEffed's picture

Somebody may have commented on something sensitive.

And that could result in over the top censoring, I guess.

And it probably wasn't one of the conspiracy theory nuts often found here that were causing someone concern.  Those guys are usually so far off base that anyone with a technical background can see the weakness in their theories.

jefferson32's picture

I had posted the first comment on this article. My comment was:

Whether the Israeli government is a terror organization is not up for debate, as they openly admit it. Their flavor of terrorism is called the Dahiya doctrine:

The Dahiya doctrine is a military strategy put forth by the Israeli general Gadi Eizenkot that pertains to asymmetric warfare in an urban setting, in which the army deliberately targets civilian infrastructure, as a means of inducing suffering for the civilian population, thereby establishing deterrence. [...] Richard Falk wrote that under the doctrine, "the civilian infrastructure of adversaries such as Hamas or Hezbollah are treated as permissible military targets, which is not only an overt violation of the most elementary norms of the law of war and of universal morality, but an avowal of a doctrine of violence that needs to be called by its proper name: state terrorism."

Soon afterwards the comment got deleted (together with its corresponding comments' subtree). You can still find references in the thread to my remark however. I had thought it must have been a bug.

Edit: the comment is back online now (I swear it had disappeared), so it must indeed have been a bug.

 

BuddyEffed's picture

It sure would be interesting is someone could provide a "diff" so we could all see what got snipped.

cnmcdee's picture

The article is back up here : http://www.zerohedge.com/news/2015-04-14/1000-mile-stretch-pacific-ocean...

Zerohedge is the <only> source talking about this at this time.

Here is the important point : a 1000 mile stretch of the pacific ocean has heated by 4 degrees  (more than normal).  In order for a pool of water to heat that much something very significant has happened.

When you do the kilojoule calculation we are talking like 8,000,000 cubic kilometers of water / 8.00 e 15 cubic meters * 1000 kg / cubic meter = 8.000 e 18 kg of water * 4 degress * 4.2 kj/kg/degree celcius

1.3504 e 23 Joules (over 6 months - 15.552 million seconds) = 8.683 e 15 watts  Or 8.68 Petawatts over an area roughly 2 Trillion square meters

 = 4.320 KW / Sq meter (Continuously)

The most energy incident from the sun on the earth after passing through the atmosphere is about 1 KW / Sq Meter.

What this means is that something has heated up the entire pacific ocean 4X the ability of the sun to do so.  Someone in the comments section mentioned 'I vote Corium' or something like that.

Either we have something right out of star trek (explaining the deleted threads possibly) or we have a 25 - 100 mile rip in the tectonic plate and the coastal cities are fucked (explaining the deleted threads possibly)

 

 

BuddyEffed's picture

It wouldn't be corium related direrctly.  Particles and particularates released into the groundwater and air wouldn't make hardly a dent.   Bioaccumulation affects might be plausible if somehow they disturbed the food chain so much as to reduce biomass.

Acidification might also structurally challenge the biomass.  

Has there been a significant algae, plankton, and biomass loss, for whatever reason, and would the loss of chemical reactions using up the solar energy available free up energy for extra heating of the surface waters?

Wouldn't be earthquake or magma related if you ask me.  That would get noticed on seismometers and it wouldn't be limited to 300 feet depth.

Isn't 300 feet close to the limit to where almost alll sunlight has been absorbed by the water already, so it's dark all the way down from there?

TheReplacement's picture

Yeah, there were at least 5 pages of comments when I left off yesterday.  Lots of missing comments about three c-o-r-e-s.

Temporalist's picture

The Fed just went "Well fuck it, if everyone dies we'll still be able to manipulate markets with HFT robots!"  They even named their first AI Bot "Kevin"

IndyPat's picture

AI bots name is "Kevin"?

I thought they decided on "BiBi" for an AI name...hummmm.

Maybe AI bot "BiBi" is going to be dedicated to the nuke side of the take down, while "Kev" just handles the continued fleecing.

Racer's picture

Can't be having the market go down can they!

Weaponized Innocense's picture
Weaponized Innocense (not verified) Racer Apr 15, 2015 11:50 AM

Markets only go down when the economy is roaring~ silly rabbit!

buzzsaw99's picture

they ARE a natural disaster

G.O.O.D's picture

The PPT's mindset is "we don't need no steekin people, they are too unpredictable. We know what we are doing, they are imbeciles that need to die. Stupid humans are all bad"

Glass Seagull's picture

 

 

Fiber optic cable link between NY/CHI too slow?  Co-locate the old-fashioned way:  by putting a server in CME's basement, and an office in our building.

 

Contact your local CME central bank liason for further details.

1-800-BUY-MOAR

El Vaquero's picture

Tylers, on at least two other articles (cop runs people over and nobody but Hillary will run for the Ds,) an enormous amount of the posts were deleted.WTF is going on?

 

EDIT:  Make that at least 3 other articles, because the article about the ocean being warmer had it happen too.

g&#039;kar's picture

probably protecting the posters. BTW since you live in New Mexico, have your read this?

 

www.newsmax.com/Newsfront/islamic-state-texas-border-terror-camp/2015/04...

El Vaquero's picture

Not that particular story, but I've been hearing rumors of islamic radicals south of the border for years.

 

And I doubt it was protecting posters.  On the article about the ocean being warmer off of the pacific NW, I had a post that simply suggested the thermohaline circulation slowing could be the cause of it.  I didn't even draw a conclusion, just posed the question.  It's gone. 

TeethVillage88s's picture

If Tyler got a heavy inquiry from some agency, then maybe it diffuses inquiries or speculation from posters if they nuke a bunch of articles.

Or maybe the agents took the comments and had Tyler nuke the data taken? lol

El Vaquero's picture

It looks like one of the Tylers had a caniption fit last night, or the NSA or lizard people or some shit, but a lot of the comments from yesterday have been scrubbed.  Everybody should go to page 2 of the article listing and recomment their views. 

IndyPat's picture

Site is loading like garbage today.

Looks like someone had to do a recovery from a backup image.

Blew away a lot of posts. Some of those were comments to posts that got 60K reads, but now show 40 comments or so...

El Vaquero's picture

Hmm, it's loading fine for me, but if it was a recovery from a backup image, I would like it if one of the Tylers came out and told us what was up.

CrazyCooter's picture

I logged in to make the DB backup/restore comment as well. I have been there, it is never fun, and sometimes shit is just lost depending on what happend and how it has to be untangled. That is to say, the level of time/effort to make an almost perfect recovery isn't worth it and a quick and dirty recovery is more cost effective. It just depends on what happened and how much dammage was done.

I wouldn't expect them to go out of their way to say so. It is a free site, I am not paying for a service, and anything I post is "donated" if you will.

If it happened with frequency, I would revise my opinion.

Regards,

Cooter

El Vaquero's picture

Sure, sure, shit happens.  I've had enough hardware failures to know this and posted before I went through and saw the extent of the damage.  But I still blame this on the lizard people.  Evil bastards should be turned into luggage. 

Urban Redneck's picture

If it was the lizard people, then perhaps I shouldn't repost that snarky comment about where oil is actually found... lest it happen again.  Actually the same holds true if it was the MIC that nuked ZH.  However, since the damage appears spread across a fuckton of articles on the main server, I'm guessing it was the server itself that had a conniption fit a couple hours ago.

El Vaquero's picture

That would make sense.  But again, I would like it if one of the tylers told us what happened. 

 

EDIT:  Just checked further back, and some pages have their comment totally nuked. 

DOUBLE EDIT:  It seems that all comments were nuked on all non-archived articles.  I still blame the lizard people.

chunga's picture

This is weird...if you go to "My Account", then put your cursor in "Whose comments are you looking for?" it prefills with some crazy names. Plus if mysql bounced or got restored you'd think you'd have to log back in?

El Vaquero's picture

Yeah, that is weird.  I just checked, and it had prefilled the box with "DuneCreature."  Something screwy is going on with the site. 

chunga's picture

same thing I got...before that it was "NOTfromSanFrancisco" they don't seem to be valid users. Oh boy I'm wayching out for black helicopters today.

Conax's picture

Looks like I picked a good day to STFU.

Icelandicsaga...............................................'s picture

Some kind of weird hack . . or the lizard people sending a message .. you can go so far .. but no further .. So SFU .. or the Tyler's are not paying the server bill so server is having its way with them.. or not.

Urban Redneck's picture

March 31st 2015...

http://www.zerohedge.com/?page=35

Something tells me Sacrilege isn't enjoying the CET (GMT+1) Happy Hour right now. 

ebworthen's picture

LEGO trading floor = Awesome!

Prop it up!  Winning!

Mr. Bones's picture

In a world where pigeons can play tic tac toe do we really need college graduates to press the red button that breaks the market if it looks like it might be a down day?

barry2001's picture
barry2001 (not verified) Apr 15, 2015 10:59 AM

If  you are into drones check out this site : http://pickyourdrone.com/

IndyPat's picture

So, the 5 Israelis are going to dance another jig in New Jersey soon, huh?

Wonder what building(s) are going to get "pulled" this time?

Fun Facts's picture

“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it”. – Congressman Louis T. McFadden, Chairman of the Committee on Banking and Currency (Louis T. McFadden was assassinated by the zio mafia)

“Whoever controls the volume of money in our country is absolute master of all industry and commerce and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” President James A. Garfield – 20th President of the United States 1881: two weeks before he was assassinated by the zio mafia

silver_stacker's picture

Policy & Market Associate - Chicago-237531

Responsibilities: Don't let the market go down, coordinate activities with banksters and mainstream media

Requirements: Master Degree in Market Manipulation, strong written and oral bullshit skills

BoPeople's picture
BoPeople (not verified) Apr 15, 2015 11:08 AM

With all of the alphabet agencies moving to the Rockies (Colorado, New Mexico, Utah ... and Nevada), sticking the Airforce communications center back into Cheyenne Mountain and the rumors in the alternative conspiracy sites about upcoming events causing coastal flooding ... and now the Fed moving opening a market operation to Chicago where Rahm has been stationed ... one wonders if they have plans to CREATE a disaster that they believe will get them out of the current mess and wipe out all opportunity for people to lay claims against the banks and government.

The two most logical PLANNED events:
1. EMP ... but that would have to be blamed on someone.. but aligns with the Cheyenne Mountain move.
2. Dropping kinetic weapons into the oceans off of NY/Wash and possibly LA ... and calling them unforeseen asteroid strikes ... killing multiple birds with one stone (so to speak).

Divine Wind's picture

 

 

 

We can't forget the buildup of air defenses around the National Capital Region,
including the Joint Land Attack Cruise Missile Defense Elevated Netted Sensor System.

https://firstlook.org/theintercept/2014/12/17/billion-dollar-surveillance-blimp-launch-maryland/

With all these preparation underway, it sure does seem that someone knows something and
that something that someone knows is not so good.

 

.

samsara's picture

How about one at La Palma in the Canary Islands?

 

https://www.youtube.com/watch?v=Zb4T8a1K5tw

SheepDog-One's picture

PPT fears natural disasters while we hope a meteor lands directly on them all in 1 sitting.

tony wilson and saturn zion devils's picture
tony wilson and saturn zion devils (not verified) Apr 15, 2015 11:15 AM

GET READY FOR THE TALMOO AND THE TORA BORA RESET GOY

 

a simple link

with a simple theme

ISRAEL DID 911

 

http://www.bibliotecapleyades.net/sociopolitica/esp_sociopol_911_107.htm

Fun Facts's picture

“Our race is the Master Race.

We are divine gods on this planet.

We are as different from the inferior races as they are from insects. In fact, compared to our race, other races are beasts and animals, cattle at best.

Other races are considered as human excrement. Our destiny is to rule over the inferior races.

Our earthly kingdom will be ruled by our leader with a rod of iron.

The masses will lick our feet and serve us as our slaves.”

Menaheim Begin, 6th Prime Minister of Israel. speech to the Knesset (24 June 1982), quoted in “Begin and the ‘Beasts” Amnon Kapeliouk, in The New Statesman (25 June 1982);

Everybodys All American's picture

I don't suppose it would hurt if you had some experience as a community organizer.

WillyGroper's picture

Here's what makes no sense.

Telco can route traffic anywhere in case of disaster. So Chitown is going to be safer than NY?

Water doesn't affect fiber. Population density for the cull?

Amish Hacker's picture

Possible cyber-attack on the New York Fed? Damn you, North Korea.

gdiamond22's picture

Nothing like the 'Free' Market to properly allocate natural pricing from global market forces

 

Pullmyfinger's picture

Fed strategy is becoming obvious. Since their true power base rests on a viable monetary system vs. the underlying economy, they really DO intend to raise rates, regardless of the consequences; in particular, the collapse of the unspeakable overburden of interest rate derivatives (whose claims will of course not be honored in the face of 'force majeur' ).

Preserving the tattered remnants of the FRN on the world stage -even if only for a few days, week or months longer- now has priority as we approach the final lemming edge.