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Dear CFTC... Here Is Today's Illegal S&P 500 "Spoofing"
Dear CFTC commissioners:
Following this week's first in a long series of articles showcasing the ongoing manipulation in the S&P courtesy of E-mini spoofing, we are delighted to inform you that even though you heroically used a whistleblower's tip to capture the sole Flash Crash mastermind, Nav Sarao, five years after a flash crash which your peers at the SEC incorrectly claimed was the work of a small Kansas City-based mutual fund, the manipulation - as you called it - of the S&P 500 continues.
By way of example, here is some very clear evidence (courtesy of Nanex) showing "spoofing" - the very charge that Sarao is being scapegoated on - occurring twice in the space of a few minutes this morning...
And while we are confident that if Nanex can see this, so can you, here is the buy side:
And on the sell side:
Then again, we are certain that you have all this data already and are already preparing the case against the perpetrator(s): after all you are the CFTC - you know "everything" that happens in the futures market. As such we are confident you are already actively investigating the ongoing spoofing in both the US and Europe... unless of course, your interest is only awakened on days when the market drops.
Regards
Zero Hedge
P.S. We won't stop this until you are forced to address the glaring hypocrisy and utter incompetence of everyone involved in the regulation of market microstructure.
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Spoofing or splooging?
I think I just splooged my pants
https://www.youtube.com/watch?v=PIJNQLI6KwY
I went to see the Talking Heads in concert stoned out of my mind. That was a fucked up experience.
2:43, above comment. Yes, they are awesome. CBGB dayz!
anyway - havin fun here
Again.. When are these thieves going to turn on each other?
I Wouldn't Be Surprised IF The FED Were Behind Most Of This Bullshit.
Is That Why CTFC Ignores It All ?????????????
As you know, there is no spoon...
My name is Nav Sarao. You killed my trading. Prepare to die. My name is Nav Sarao. You killed my trading. Prepare to die. My name is Nav Sarao. You killed my trading. Prepare to die.....
How the fuck can spoofing manipulate the market when most of the transacted volume occurs in dark pools??
Spoofing only works because it fools algos which are "sniffing" (as defined by Goldman), sniffing is also illegal.
So Nav cannot possibly be found guilty in the absence of ANOTHER guilty party. One guilty of sniffing.
Inconcievable!
Personally I don't think spoofing should be illegal.
You should be able to inject and cancel limit orders (liquidity) with absolute impunity.
The very fact that the order makes it to the CLOB means that the liquidity is real and can be executed if sufficient demand for liquidity arrives whilst the limit order is on the book.
The problem here is that U.S. market microstructure is deeply flawed.
In London there is no maximum limit to order size, which means that a single marketable order can demand all of the liquidity in the queue instantaneously (there isn't time to cancel).
The fact that spoofing can result in extradition and carries up to 20 years imprisonment is proof alone that the U.S. authorities have NO CLUE about how a limit order book functions.
It is an open market or not. Sorry but people trying to get other people to buy or sell is as old as the markets themselves.
This is the latest distraction....
As you know, there is no spoon...
Technically, this correct. There are two spoons. Both silver. One up each end.
The problem seems to be these also need to be posted on the porn sites as well so they could be more readily noticed by CTFC personnel...
No tits or dicks, that's why the CTFC ignores it all.
Their "top Men" will be on this, just as soon as they find the Ark of the Covenant.
'...same as it ever was...
-and remember to teach your kids respect for the law---
I'm sure aderol wouldn't have helped .... man I think the talking heads were snorting the stuff last night. It was very difficult to listen to them listening to themselves talk and enjoying ever bit of spit they could use to additional actuate their words.
Talking about bad trips!
It was Larry summers to the factor of hyperinflation .... What's everyone snorting the stuff? Is that aderol? Is that from snorting aderol? WTF
P.S. We won't stop this until you are forced to address the glaring hypocrisy and utter incompetence of everyone involved in the regulation of market microstructure.
We should all send this everyday...bombard them with this shit hourly
This kind of post is why I continue to stick with ZH. Makes up for the times when the discussions sometimes slide off into the twilight zone. ZH has been a constant champion of how the entire HFT industry has broken the markets, and how desperatly and distantly behind the so-called 'regulators' are, perhaps (ahem) by design.
+1, + more if I could.
This is exactly why I stick with the Hedge too. All the celebritard threads, all the stupid "is she hot" bullshit, all the LEO red meat for the dog pound and the to-and-fro in the comments re: rayc-ism or USian red-blue politics, is worth putting up with for the occasional, out of the park investigative journalism such as this. Zero Hedge is still a leader when it comes to HFT exposure. It is EVIDENCE, if there is ever a criminal court convened to try these people, then this would be EVIDENCE for that court to examine b/c it is good journalism. It is rare, and sometimes it is found here.
You expressed it far better than I am, but it is nice to see a comment so in tune for why I have stuck around all these years too, since the founding of zerohedge.com, and before, from the blogspot days, as a lurker.
IS HE HOT, is 'EXACTLY' what made Mark Zuckerberg a billionaire almost overnight.
Not saying you're wrong here, not at all, but to totally ignore that dynamic will not align you with the current, (& perhaps 'HISTORIC'), pace of the world.
Just sayin' - PEACE
good idea ... lets raise the stakes ... make them earn their money for a change :)
AIIB,
One of my favourite Talking Heads tracks - very funny spoof!
DavidC
You see the green bar in the charts? Thats trades EXECUTED. I.E. the only ones that were not cancelled.
Oh, you can't see the green bar?
I note an order size correlation to orders being executed. Small orders, likely retail investors, get filled (after being front-run of course), while larger orders (likely HFT algos) get cancelled. Its not a market, its a casino.
His name is Navinder Sarao...
He was Edmond Dantés... and he was my father.
And my mother... my brother... my friend.
He was you... and me. He was all of us.
If the CFTC reads these daily reminders use them to start arresting a convenient string of "copycat" day traders and hackers, then we would have an interesting problem and conundrum, well beyong the the current levels of tinfoil haberdashery that gets exposed as anything but...
In the meantime we can enjoy the antics of the JV amateurs of the SEC & CFTC.
It reminds me of one of those episodes in the original Star Trek where they find out that the computer running some dystopian planet isn't so smart after all.
And smoke starts to come out of the back room somewhere.
I freelance over th? internet and earn about 80-85$ an hour. I was without a job for 7 months but last month my paycheck with big fat bonus was $15000 just working on my computer from my home for 5-6 hours. Here's what i have been doing... www.globe-report.com
"Nobody's innocent...least of all the government"
WHA?
Well that's why nobody is my middle name!
And my first...
Because...regulatory capture.
with the MSM complicit/willingly ignorant, whats to force these twats to change?
They of who they hell do they think they are now..... Will usually pretend to change (if u step out of the rip off line and create a non rip off line) just to kill the competition in order to keep things the same way they always were in order to kill those who dare to walk away from the crap they need to shove down ur throat!
But it's fun to watch the dance u know the world can see as since some peeps forget they're on stage against a dot in the crowd.
Please tell me ZH is actually emailing them this info and not just posting. Operation: Flood Inbox
Free Martha!
Yea but I am here. Lover patented, Kiki, Hillary and company would never take their eyes off of me for one second these last several decades. Even if it is for just a clone job for the dissing of me stepping out of the rip off line..... They need my eyeballs 24/7 because how dare I have a life without them fucking me over with all the back doors left open to rape my mind with bullshit. Don't kid urselves they are watching everything going down here.
Not that I'm dissing snail mail or email or any other way one has to deal with this like a like a zillion bucks of bribery mula.... Whatever but they here!
I want to invest in the Cloning technology Sarao has obviously perfected....the guy is EVERYWHERE!
I was just about to post that. No doubt that Mr. Sarao is being cloned by Russians from secret labs in Ukraine, Syria, Iran, North Korea, Yemen, and countries to be determined later.
Must invade to preserve capitalism and free markets.
My god!....I never even considered the North Korean connection.....I bet this technology is also backed by the Illuminati and Oreo Cookies....
Go get 'em Hedge.
Brother Tyler preaches it once again. Love the tone of the author, especially the concluding remarks.
deliver this to Santelli...
i know, CNBS is just a propaganda hub for the Fed and Wall st. but maybe its worth a try...
just sayin.....
agreed, that is a great idea. rick santelli is the only one on cnbc who would actually say something about this on the air.
none of the other clowns would do so, thats for sure.
Blatant
“Nonfinancial corporations haven’t raised any net capital in the stock market for 21 straight years.”
That’s today’s startling blockbuster from Rex Nutting on MarketWatch. Here’s his opening salvo in “How the stock market destroyed the middle class”:
WASHINGTON (MarketWatch) — There’s something seriously wrong with an economy that nurtures a few billionaires but can’t sustain the middle class.
Many factors have been blamed for the plummeting fortunes of the American middle class: globalization, technology, deregulation, easy credit, the winner-take-all economy, and even the inevitable tide of history.
But one under-appreciated factor is a pervasive business model that encourages top managers of American corporations to loot their company for short-term gains, depriving those companies of the funds they need to build and enlarge, and invest in their workers for the long haul.
How do they loot their company? By using large stock buybacks to manage the short-term objectives that trigger higher compensation for themselves. By using those stock buybacks to manipulate the share price, which allows them to use inside information to time their own stock sales. By using buybacks to funnel most of the company’s profits back to shareholders (including themselves).
They use the stock market to loot their companies. …
http://www.marketwatch.com/story/how-the-stock-market-destroyed-the-middle-class-2015-04-24
P.S. Don’t miss the chart: Net issuance of corporate equities – Nonfinancial Corporate Business - Billions
You can cancel an order just made a 1/4 second later? And then reap the spread. This is not front running, it is cheating and driving up the price. Call me naive. The whole place needs an automated guillotine!
At this rate, we should have a million examples like this on the way to Dow 20,000 !
FOARWARD !!
You've almost got to admire the mathematical elegance of the thing. Of course the fact that it literally steals food from the tables of the disabled, the working poor, persecuted ethnicities, and so on and so forth takes a bit of the luster off. Grotesque yet strangely compelling. Grand Guignol.
It's only manipulation when it goes lower.
how nice would it be to have the capital to hit those "spoof" offers before they are pulled? hey boss, we "spoofed" and someone sold us 10k contracts in that 1/8 of a millisecond.
if you end this the NY FED and the dudley immediately have to get QE going, otherwise the last 3 years of stock market gains are wiped out in short order.
.
We are going to relentlessly bang this with all manner of Visual Combat every trading day.
The eCONomy is strong : Ford to cut 700
http://www.cnbc.com/id/102615759
If it was weak Ford would cut 1400 (CNBC-logic)
zero, can you show us the same info on treasury futures? my gut feeling is that this criminal activity started in treasury futures in late 2012.
manipulating prices on bonds of your own country...wouldn't that amount to treason and guillotine? maybe not guillotine, but something...
So does Sarao's Lawyer have this data? Would be helpful in defending his client.
Will we have to wait another 5 years for 2020 hindsight?
Eyes to see CFTC!
Man, and look at this chart
https://pbs.twimg.com/media/CDXvLu2WMAEOvCG.png:large
and see how Navinder Singh Sarao has engineered the selloff in the S&P 500 in october at junction of the round level SPX*DXY = 170k and the trend channel top by plunging the oil price and spreading the ebola craze in the media.
This wiped out $2 trillion, according to Bloomberg.
http://www.bloomberg.com/news/articles/2014-12-01/record-s-p-500-momentu...
And of course, caused the 11 std. dev. move in the bond market on oct. 15.
James Bullard is a real modern-day hero for the countermanipulation he provided with excellent timing on the 16th at the channel floor.
The CFTC is very selective in when it chooses to open it's eyes.
You can't have a Ponzi without everyone on board.
Bravo !
I wonder if the fall guy actually has any money. Maybe the cops just want their fair share of it and once he can't prove it is really his they'll confiscate it and buy toys for children and new Hummers™ for the chief and all will be forgiven. Maybe this isn't about trading and is all just trying to make the money goes where it should. Maybe the CFTC wasn't supposed to get involved.....it could tarnish their reputation.
On a serious note, if you KNOW who it/they are then NAME them. Nothing like naked exposure...you CANNOT be afraid the CFTC is going to charge/arrest you?! ZH is not afraid - it is fearless. I seem to remember watching a movie about that kind of thing....title escapes me at the moment.
Pete
ATTN: Please forward & wake these CLOWNS up!
CFTC:
The Commission relies on the public as an important source of information in carrying out its regulatory and enforcement responsibilities. If you have information about a violation of the Commodity Exchange Act or Commission regulations, you may either file a tip or complaint under our whistleblower program, or report such violations or other suspicious activities or transactions to our Division of Enforcement. Persons with customer complaints about a futures industry professional may also file a complaint under our Reparations Program.
http://www.cftc.gov/ConsumerProtection/FileaTiporComplaint/index.htm
"They barred me for being to good a player!"
I called my congress critter's office today to point out the highly selective enforcement of the law, and how as a consituent, I was being harmed, and suffering financial losses. I then addressed a letter (with a stamp -- remember those?) where I included posts from ZH for the last 3 days.
Will that make any difference? If I'm the only one who does it, probably not. But better to commit to acting than to just sit here and leave comments on message boards, I guess.
Calling your Congressman's office only puts you on the Red List.
My remember contacting my Congresscritters to oppose TARP.
You can see how well that worked out.
I won't complain, though. Seeing the banks get bailed out, in real-time, was my personal Matrix black cat deja vu moment.
My Congressman is constantly emailing me about how he is fighting for my rights in Congress (and soliciting donations). I contacted him to explain the current push for a state run Article V Constitutional Convention that could amend the Constitution to change, or even eliminate Washington, D.C. and asked for him to support that movement. Haven't heard back from him yet. I'm sure that he is just spending some time trying to find a copy of that obsolete document so that he can find out what an Article V convention is about so that he can throw his full support behind it.
/sarc
Talk about being put on the red list. I've got to be in capital, bold letters.
The CFTC should put themselves in jail.
wonder how many million dollar wall street jobs will have to be offered to prevent Washington from doing anything?
WTF ... Sarao isn't even trading today.
I lost 11,000 on 5/6/10 ... I wrote the CFTC, lodged a complaint, followed up ... and do you know what, they never returned my email, go figure.
Tyler, wouldn't starting these letters "Dear CFTC COCKSUCKERZ," help in some way?
Dear ZeroHedge,
You're really becoming the smelly turd floating in the Wall Street punch bowl.
Respectfully Yours,
All of us at the CFTC/SEC.
Why do HFTs think no one will try to eat their lunch? There are zillions of virii which exclusively attack bacteria.
Innocent until proven guilty. He will come to the US and obtain a public attorney and justice will reign.......oh god he is f***ed.
See the glory
Of the royal scam
[/Steely Dan]
P.S. We won't stop this until you are forced to address the glaring hypocrisy and utter incompetence of everyone involved in the regulation of market microstructure.
Hell yeah!
good work ZH and Nanex!!!!!!!!!!!!!!!!
"P.S. We won't stop this until you are forced to address the glaring hypocrisy and utter incompetence of everyone involved in the regulation of market microstructure."
Oh they must be terrified!
I love your website Tyler, agree with many of your posts but hey, mom and pop don't read ZH. They watch TV/Netflix/whatever. If mom and pop don't care, politicians and regulators don't care either. Or at least, they don't have to pretend to care.
Once in a while, they handcuff a "rogue trader", a "rogue cop", a "rogue politician", a "rogue whatever you want", it makes the headlines, "proves" that they are doing their job ... you already know that, just wanted to emphasize that whatever you say, they probably don't care.
But please continue exposing these incompetent (I would rather say complacent) regulators. If you don't, no one will.
"P.S. We won't stop this.."
That's got to sting.
Nothing but numpties at CFTC.
CFTC won't do anything and never will.
The CME Group can fix this in a heart beat - the CEO is Phupinder Gill.
Send Phupinder Gill an email and tell him to fix his broken stuff.
keep up the good work lads, hat tip to you ZH and Nanex
it only seems to be a crime when the offender has brown skin and a funny-sounding name -
There is apparently no need for the CFTC. Since, they do not do their job.
Submit a few hundred complaints a day
http://www.cftc.gov/ConsumerProtection/RedressReparations/index.htm
http://www.cmegroup.com/market-regulation/dispute-resolution/
Best Post (and comments) of the day. Well done ZH!