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Dear CFTC: This Is The Market Manipulating "Spoofing" Taking Place In The E-Mini Just Today
Dear CFTC:
Thank you!
Thank you, because 6 years after we warned about the dangers from predatory HFT including such parasitic "strategies" as spoofing (or layering, which together with the DOJ you have now confirmed is illegal), quote stuffing, flash trades, momentum ignition, sub-pennying, ISOs, and countless others, you have confirmed everything we have said.
So we have decided to return the favor.
Just because we know how serious you are in your quest to root out all market rigging, or as you put it in your charge against Navinder Sarao "manipulation or attempt to manipulate the price of the intra-day contract price for the near month of the E-mini S&P," we have decided together with Nanex to once again give you a helping hand, and point out all the spoofing that has taken place in the E-mini or ES.
Just today.
The chart below shows a contract count of just the buy orders added/canceled/executed in the 1 hour interval between 11 and 12pm in the ES:
And here are the "sales":
To remind you, this is what irritated you in the Sarao document:
... Defendants used the Layering Algorithm to place hundreds of orders for tens of thousands of contracts that were modified thousands of times and eventually canceled over 99% without ever resulting in a trade.
As you can see the vast, vast majority of ES contracts just before lunch today was cancelled without ever resulting in a single trade.
And, we are confident, since Mr. Sarao is currently either in custody or on bail, without access to the internet, one can't blame today's massive E-mini spoofing on the flash crashing mastermind.
Since we are confident you intend to root out this evil market scourge at the root, we are also providing you with examples of spoofing in oil, in US Treasurys, and in gold.
Finally, since like you we are confident the investing public's faith in the broken market must be restored at all costs, we will make this article into a daily feature showing every single day the hundreds of thousands of spoofed ES contracts, openly "manipulating" (in your own words), the so-called market.
We will stop once you, dear CFTC, have rooted out all the spoofing, all the momentum ignition, all the sub-pennying, all the quote stuffing. In short - the endless manipulation.
Now, go get 'em!
P.S. if you are unsure who the spoofer is, call us - we will be delighted to tell you: we don't even want the whistleblower award.
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I'm sure they appreciate the help, Tyler.
That's a lot of folks with trading terminals living in their mothers' basements.
they're just doing god's work, afterall. that guy in britain should be given a nobel peace prize.
Fuck you Bernanke, Corzine and your friends.
https://soundcloud.com/olav-nurk-1/varakevadine-ohtu
I thought the CME was getting involved and spoofing was down.
It must of been notable if in the DOM on ES. Sometimes it all looks like spoof daddy or spoof doggie going at it.
Probably a box owned by the fed named the bernanke ballbuster 1000. What the hell good is manipulation without fucking with people, too.
That's okay cause I got my mom living in the attic, so, it breaks even.
Time to pull everyone's favorite platinum-coiffed surrender monkey out of retirement to issue a shrugging apology. Paging Bart Chilton, bitchez!
.
So much so that I'm sure they're building a conspiracy case against ZH AND Nanex right this second.
No one should believe any of this. ZH is a fringe conspiracy blog and can't be trusted. I'll wait for Steve Liesman to explain in short, monosyllabic phrases what's really going on.
Baaa....baaa
I trusted turbo timmy, and look where it got me.
watch out for nail guns, Tylers.
it's only ok when they do it, not yous...
We blamed some folks!
Chewbaca, where's my meatloaf? Joe and Flavor Flav are coming over for lunch!
make next friday, spoof the ES day.... let's all add huge contracts 2-3 points above the bid and cancel them...
you go first
Raywolf -- That's borderline consipracy and wire fraud all wrapped in one! Don't be suprised is someone soon also feels you out about joining ISIS and if you want help from other like minded individuals in your/their project.
Dear Tyler et al,
Please collect these HFT/spoofing/Manip/SEC scapegoat posts for Navinder Sarao's defense team.
The defense may well be in need of the ZH blog views as direction-finders for real and demonstrated evidence.
A treasure of benefit for the 99%.
are you trying to get ZH shut down?
obviously it will have to take the wikileaks/piratebay route to disclosure, eventually, but let us enjoy it a little longer.
Wait, wait, wait. This isn't possible. They caught the guy already. Did he make bail already or something?
Its his brother.
They forgot to turn off his computer.
He's using Morse code to signal to a paid prison guard what to do ... real-time.
Greetings. Professor Falken.
It could have been me today. I don't know anthing about trading but when my porn site stalled - I just starting hitting buttons without knowing what I was doing. So if it was me, please accept my apology. If my Mom finds out - could be strike 3 on this sweet basement pad. Then I'll have to take my degree in Critical Analysis of Communication Modalities and get a job
He must have: clearly he is the sole embodiment of all HFT evil.
This case should be a cake walk for Sarao to win. A good attorney will bring in a terminal and the jury can watch the spoofing in real time.
As long as he can avoid Tsarnev's attorney who must have been inspired by the movie "Idiocracy."
here it is: https://www.youtube.com/watch?v=-RLWghvftHI
must be another darkie in mom's basement with his Dell laptop
Sad world
Zero Hedge truly is awsome sometimes. Great Article.
yes it is. I wish I cd give this article 100 frikking stars haha ! ZH /Tyler at their Best !
btw however those other 'hinderberg omen' type daily articles last 4 / 5 years kinda taking away ZH credit IMO...
I especially like the threat of ZH publishing the manipulation daily. This promises to be better than taco Tuesday. Let's see how long they can be ignored.
Keep it up TD, well done!
Put a forced 10 second delay in withdrawal of buy/sell orders. After all, what could be more fair.....
Tax it -- $.01 tax stamp required to place an order for listed security on an exchange, and $.02 to modify an existing order.
It will either solve the problem or pay off national debt immediately.
Now do u think the regulators would allow such a common sense approach? What would be left of this "market" if this type of cheating was stopped? Think of all the poor millionaire millenials that have just put a down payment on a 4th vacation home. Where is your humanity sir?
Heads I win, Tails the Banksters lose.
The regulators would do it, if the purchased politicians were replaced (either at unrigged ballot boxes by an informed electorate, or at a guillotine), as the shit get worse the odds do improve ever so slightly...
What I'd like to know is how somebody gets to place millions of $$ in orders unless he has it in his account to complete the order? Funny, mine doesn't work that way.
Besides, isn't what they are charging him with the definition of the HFT firms?
Millions with a b
Yeah and Lloyd's really shitting his pants abnout this right now. FTW
ZH, doing Gods work...
Somebody is going to get audited, not Citadel or Virtu.
Stop with all the facts.
"Stop Making Sense". Oh how I long for the Louis Rukyser days. IBM bid 50 1/4, ask 50 3/8ths. OK I'll buy 100 shares.
CFTC: One of the most corrupt organizations ever created by man.
Yes--except for all the other imperially corrupt American regulatory agencies.
Nah, the NFA is 1000Xs worse, and they are incompetent as well to boot...
CFTC: One of the most corrupt organizations ever created by lizards
This poor guy is like a single rat being blamed for the Black Plague while all the other rats and fleas go about their business.
pods
OK, tell us who today's spoofers are, curious minds want to know.
Well, the two that matter are Citadel and Virtu.
When they do it, it is providing Liquidity.
When others do it, it is spoofing for fun and profit.
"
When they do it, it is providing Liquidity.
When others do it, it is spoofing for fun and profit."
This sums it up right here.
The real issue is the scapegoat spoofed the markets lower...the powers that be did not like that one bit.
Not for nuthin', but I typically cancel 20-50 contracts for every one i fill.
We spoofed some folks.
Ha ha..fucking good for nothing cftc
Anyone 'spoofing' orders should have their nuts blown off with M-80's
Must have a gang of moronic imbiciles or retards working there for a group of Banks out of New York.Isn't it funny with all the technology that the NSA has that they refuse to bust the crooks doing this and the Regulators playing stupid while looking at porn.
Spoofing is only frowned upon when it causes the market to go lower. Because the SPX made a V shaped recovery at 10:15 am today, the people who were spoofing I am sure got a call of gratitude from the NY Fed for a job well done.
The CFTC is a F-in joke. Just like the porn reviewers at the SEC.
Bart Chilton was the dufus in charge squatting and collecting his checks while making sure criminal financial activity continued unobstructed for the big boyz.
What's the difference between the SEC and the DEA? The DEA made their own glory hole, the SEC just watched people use them on xhamster.
Truly a joke. It's doubtful that, that Dauber-looking assclown even knows what HFT stands for, let alone has any understanding of the manipulation that takes place.
"He began attending Purdue University in 1979, majoring in political science and communications[2] but left one semester before graduating to work on Democratic Party1984 political campaigns.[3]"
'Chilton worked in the U.S. House of Representatives from 1985 to 1995, where he was legislative director for three members of Congress and was the executive director of the Congressional Rural Caucus"
http://en.wikipedia.org/wiki/Bart_Chilton
I hope you emailed it to them as well.
Any frustrated real people working at CFTC?
ZH Contact info (use a burner Yahoo! email): Tips: tips [ at ] zerohedge.com
OMG!
A sign hung on the door of Jamie Dimon's office:
Gone Spoofing with Lloyd,
Will be back tomorrow.
JD
"A sign hung on the door of Jamie Dimon's office:
Gone Spooning with Lloyd,
Will be back tomorrow."
Corrected that for ya.
They can't take any action against HFT now. It would prove their incompetence which they are not prepared to do. Rather, they need to establish an "HFT Regulatory Advisory Committee" so that they can "understand" HFT and to determine how they can "preserve the benefits" of HFT while protecting against some of the "anomalies" that occur in the market as a result of HFT. Study the issue for 3 years and then propose some rule changes rather than taking enforcement action. This "blesses" the criminal activity that has occurred while the regulators "struggle with the challenges that HFT pose, in addition to its obvious benefits". Then the proposed rules will get passed by "industry" organizations to ensure that the new rules won't "negatively impact liquidity", after which they will get watered down until they are more or less meaningless.
absolute 5 stars
What, you think you like me? You ain't like me motherfucker. You a punk. I've been with made people, connected people. Who you been with? Chain-snatching, jive-ass, maricon motherfuckers.
CFTC is now investigating Zerohedge for excessive "snarkiness."
I see nuthin, I hear nuthin ----
The next Banzai should be Tyler rubbing the nose of the puppy (CFTC) in a BIG STEAMY PILE OF SHIT.
Any honest people working at the CFTC, your wasting your time!
Get out before you lose your way and become a criminal as well.
This corrupt organization is better staffed by the top embezzlement criminals.
CFTC is TBTJ
TCTJ - to "connected" to jail
those new Chinese student mom pop investors, dam their souls
actually, it's the Chinese grandmothers with knitting needles. Trading AND knitting at the same time is hard. it's probably an honest mistake.
The likely reason they arrested the gentleman is he told regulators to "kiss my ass" (can't recall if it was e-mail or telephone) when they suggested he place good faith orders. If, like the larger firms, he'd done the reverse (kiss regulators' collective asses), he'd be spoofing his behind off as we speak ...
it is probably another rogue indian trader. you know those indians. that brown skin gives their criminal intent away.
And there's like a billion of them, so stopping just one won't help.
If you believe that, I've got four dead bodies in Benghazi to show you.
Dear CFTC,
You have betrayed your countrymen just like all other parts of the federal govt have. If you have any honor at all then you would pack up your tent and leave town - ie, quit. If you have no honor then by all means continue being traitors.
ZH, shut the hell up as you are affecting our ancillary backdoor income. Yours truly CFTC
I used to change my prices often on options as the underlying equity changed in price hoping to get the best deal possible, that can't be illegal, right? Now flashing size (and not wanting to buy) on the bid to get someone to jump on the ask in a thinly traded market, well, I've never done that-- that is a dirty trick -- then again if someone dumped into my bid I'd own the stock I didn't want. And I could never flash a bid unless my account had equity to pay for it; if the flashers didn't have equity than they should be shot. And now that I think of it, anyone trading on the basis of bid/ask depth alone should be shot too. Not really.
They're here to stay ... they aren't going anywhere... it's useless to complain... complaining about this doesn't make you money... don't believe what you see... listen to the market... trade the momentum automated the way they do... if you have trouble coding your ideas... I can help
HAHAHAHAHAHA
Damn I wish I could read this all day live!!!!
Ha ha ha ha ha~. Yea baby!
3:30 ramp is early today. $129+ for AAPL?
You bet, once it's revealed that Navinder Sarao did all his spoofing on an iPhone 6.
I’m going to invent the eTiny futures.
They will be 1000 times below the underlying.
There will be special awards for the most frequent spoofer.
The greatest cheater will be rewarded with a prize 10,000 times his theft and will receive a get out of jail free card.
The only downfall will be getting a tan, or looking like you have a tan!
Captain Renault: I'm shocked, shocked to find that gambling is going on in here!
CENTRAL COMMAND OPERATION ROOM HERE (NOT A JOKE)
http://foreignpolicy.com/2014/04/29/exclusive-meet-the-feds-first-line-o...
Can someone please email this article to Mr Sarao's defence team. It will prove invaluable.
LOL! Looks like they have a few more "traders" to prosecute...
The cancellation rate to executions on the 35s and 50s area are incredible, how come nothing is done about that illegal activity?!
It’s got to be a computer algo, not even Jim Carey or Mel Gibson is this bipolar.
I hope the Tylers make sure this article ends up on the SEC and others twitter page. SEC just got slapped in the face!
Oh snap. Damage control...
BTW Scott Hunsader at Nanex is doing a great job as well.
SEC if you want to know answers and you truely do not have the technical capabilities, I'm sure Scott will take a consulting gig with you to get you guys up to speed.
Tylers, fantastic work!
Let's bring back Bart Clinton. Business in the front, party in the back.
/sarc
Hairstyle of the Gods.
Awesome. Get the guy a good lawyer who wants to make a name for himself. I hear Clinton Foundation has some spare cash to fund the project. Clinotns seems to like technology and legal bla, bla, bla. Rediculous world.
You can tells us who the spoofer(s) are. We, your loyal folllowers, can be trusted not to tell anyone.
But none of this Illegal for the FED to do!
B..b..but I thought the bad guy was in jail and trading was safe again?
"Did I DOOO DAT?" https://youtu.be/xz3ZOoYSMuw
I see lots of *caugh*caugh liquidity being provided in those charts... It's like musical chairs.
Round & round she goes... Where she'll stop anyone knows.
#shotsfired
OH my. Tyler you're poking a bull with a red stick ....i will be sure to watch for each day's article.....and one day, i will know when the SHTF....because ZH and all the other truthtellers will no longer be on the net.
"When the situation gets bad enuf, they will not only lie......they will make damn sure no one is left to call them on their lie.
"One if by land, Two if by sea......and if no lanterns are lit ? "
I am sad to say that you are sorely mistaken in your view. You see they truly DO NOT GIVE A SINGLE FUCK WHO KNOWS OR WHO SEES WHAT THEY ARE DOING. THE ONLY ONE DOING ANY POKING IS THEM. THEY ARE POKING US WITH A STICK BECAUSE THEY KNOW NOTHING WILL BE DONE ABOUT IT.
THAT MY FRIENDS IS JUST HOW FUCKING BAD THIS IS.
I think our Hounslow "trader", smarter than the HFT and the Mercantile exchange, will become an icon of the individual smarter than the scam and the "machine" of financial dystopia.
If the US admin makes a bogey man of him they will become the laffing stock of the NET.
And Navinder would have gotten away with it too, if it wasn't for the pesky SEC and CFTC.
Great ......
Send the update to the CME and CBOT.
Put it on Facebook and twitter.
Start a grass roots effort. Try to embarrass the hell out of them. (probably not possible)
Pick a day and ZH'ers can floor the CFTC and SEC with emails.
The HFT's will not stop till they are made to stop.
Make them squirm!
CFTC, go and chase bernanke at Citadel, thats where the criminality resides, you hopeless morons!
The laws he has supposedly broken are broken every single day by the big players in the market, yet he is being made an example of. Sod off you crooks and leave this guy alone....
So he has made £27m and lives in Hounslow. For those of you who don't know Hounslow it's a shithole at the end of the runway of Heathrow Airport in west London.
The likes of Marcus Agius, former Chairman of Barclays who was forced to resign after being implicated in the LIBOR scandal walk free and are allowed to be head of the trustees of The Royal Botanic Gardens Kew - the foremost botanic gardens in the world, less than 5 miles from beautiful Hounslow..... It sucks. Sling Agius in jail for life, and let The Hound of Hounslow (wolf of Wall Street) go free.
You can watch this shit all day in trading on SPY. From the other day.
A few Sizes occurring between 2:30 - 2:50 PM EDT when SPY ran up from 209.70 - 210.09 the high as of this writing. These are all real - no make believe. I mean - you cannot make this stuff up. 1030 x 12 25 x 30 903 x 37 4 x 25 1095 x 11 1180 x 19 52 x 119 1180 x 6 1280 x 12 1030 x 13 21 x 54 1180 x 8 6 x 41 1115 x 9 9 x 30 1030 x 8 25 x 20 1030 x 3 2 x 47 1185 x 3 12 x 131 1180 x 5 1 x 37 I could go on an on as I am easily distracted. I did buy some Puts near 209.99. Did I mention that I hate fucking Algos? This stuff is so obvious it jumps out at you. The Algos are very fond of the 1030, 1180 and 1040 Bid size Spoof/Stuff. As soon as I close out these positions, I am out of the market. Fuck the Fed and the Algos and the Zombies.And the sidways channels for hour upon hour with a swing of 80 cents or so. YAWN
Now wait is bill gross talking short yields? I'm confused.... Are we talking opposite in the yield now on tv? Cause TV always talks price not yield on long short....
Whatever..... I need to chill... My mind tonight
Spoof the market
Since markets are rigged like casinos and the odds are 100% against any fair trade,
it makes total sense that the only way to make hay - is to spoof the markets.
everyone else does it, so why not the small investor, mums and dads...
everyone should join in !
It's a rigged game and all is fair game in a war.
WR;)
THIS is the quality I love reading in ZeroHedge. Among the best stories of the year? Definitely. It gets 5 stars.
"Thank you, because 6 years after we warned about the dangers from predatory HFT including such parasitic "strategies" as spoofing (or layering, which together with the DOJ you have now confirmed is illegal), quote stuffing, flash trades, momentum ignition, sub-pennying, ISOs, and countless others, you have confirmed everything we have said. "
and thank you, ZH, for your constant repetition of this message