Algos Set New Speed Reading Record: 4549 Words In 20 Milliseconds

Tyler Durden's picture


The market is indeed a discounting mechanism it appears. In a mere 20 milliseconds, the world's 'traders' had managed to read Bernanke's 4549-word script, interpret it (as bearish in this case - which apparently is wrong now?) and start to sell down the major equity indices. As Nanex points out, not only was the reaction lightning fast (actually faster than lightning) but it occurred in their newly created 'fantaseconds' as trades were timestamped 'before' the bids and offers were even seen in the data-feed. How long until the machines can interpret Bernanke's 'pre-QErimes' and really front-run reality?


Nanex ~ 31-Aug-2012 ~ Bernanke Speaks Fantaseconds

When the Bernanke speaks, the fantaseconds flow. See if you can spot them.

Charts below show the bid/ask spread (shaded) and trades (dots) color coded by exchange. Not all exchanges are shown for clarity. 

1. Nasdaq (black) and NY-Arca (red).

2. Nasdaq.


3. NY-Arca.


4. Nasdaq, NY-Arca and BATS.



Source: Nanex

Your rating: None

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Fri, 08/31/2012 - 11:39 | 2752850 The Wizard of Oz
The Wizard of Oz's picture


Fri, 08/31/2012 - 11:40 | 2752854 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture


Fri, 08/31/2012 - 11:44 | 2752880 malikai
malikai's picture

Positively Bullshi!

Fri, 08/31/2012 - 11:51 | 2752905 Cult_of_Reason
Cult_of_Reason's picture




Fri, 08/31/2012 - 11:57 | 2752931 withnmeans
withnmeans's picture

China working on all trade in South America "using their currency". As I mentioned earlier, China and Russia are working on using their currencies for trade. The clock is speeding up on the "Dollar world currency demise", the U.S.  toilet is about to be flushed.

Reading news from Spain, it seems that they "the people on the street" are disgusted with their government lies as well. There are having problems believing the printed numbers, as facts are not fact anymore.

Be aware of your surroundings and stay thirsty my friends !


Fri, 08/31/2012 - 12:03 | 2752954 Deep79
Deep79's picture

My friend, all this talk of US losing it's dollar reserve status, all bull.

As long as US has most powerful military, the dollar will be reserve currency, simple as that



Fri, 08/31/2012 - 12:10 | 2752978 viahj
viahj's picture

what evidence do you have that TPTB and other rival economies are working to PRESERVE the USD?  sure, they will try to destroy other currencies first but there is no plan to save the USD.

Fri, 08/31/2012 - 12:24 | 2753025 Deep79
Deep79's picture

I wont take credit, read it as a comment here over a year ago

all this talk of hyperinflation is all bull. TPTB aint stupid, they know either way, we have to have a massive correction. Will we have hyperinflation first then a collapse or massive deflation. If we have hyperinflation and currecncy collpase , everyone loses, the billioianre is now no better than bum on street. 

Or we have a massive deflation, and billionair loses 50% of wealth, he still filthy rich, but now assets are 50-80% cheap, he scoops them up and we start cycle all over again.

As well, as bearish as I am, US will come out on top, ya SP will be at 400 to 500, but US will be better than most places. 

Fri, 08/31/2012 - 12:22 | 2753017 fattail
fattail's picture

Thank you Mr. Gartman.  But we can no longer afford to have a military of this scale, nor all of the foreign outposts.   The American people are war weary, and we can not stop china or russia from doing bilateral deals with the rest of the world, because they have nukes.  The dollar wil be a reserve currency, but not the reserve currency, and that migration will be costly to all of the holders of the green paper money.

Fri, 08/31/2012 - 12:24 | 2753026 withnmeans
withnmeans's picture

Deep79, to start with "I did not give you a negative vote", as your are entitled to your opinion. However I do disagree with your thought on military might being the keeper of the currency. I think the world is now getting to the breaking point on being under the thumb of U.S. banking. 

The Dollar was the way to go, until it started to step on the hands of the little people. Why should any bank in the world have to report to the U.S.A., good question. When governments begin to get that paranoid and need to know where ever dime is spent, there is a problem...

I for one would have no problem trading you some of my Sand Dollars for your beer!

Cheers mate !

Fri, 08/31/2012 - 12:35 | 2753066 Deep79
Deep79's picture

No problem mate

Then it will shock you to see how high US dollar gets over next few years.

Just like the yen, which has been rising (why, they have more debts than US, but yen keeps strengthing), it's all the carry tarde. The dollar has been used as a carry trade last few years on a scale much larger than yen. Also most debts are USD donominated. when reality hits markets and margin calls start coming in, what happens. People will start running to buy US dollars to cover, corp will start to pay down debt and so on and so on.

I thin dollar bottomed. As posted above, the TPTB will not let it happen, they know either way a massive correction has to happen, but they will be their to scoop eevrything up at 50-80% sale, and start cycle all over agian.

Ya, russia and china are going to have reserve currency, cmon mate think about it.


Fri, 08/31/2012 - 11:43 | 2752877 Flounder
Flounder's picture

What is really bullish is the 10 yr SPG hitting 6.89%.

Fri, 08/31/2012 - 11:45 | 2752887 GERxit
GERxit's picture

Speaking of bullish... Tyler, where's the "GOLD BITCHEZ!" thread today?


Fri, 08/31/2012 - 12:01 | 2752947 LongSoupLine
LongSoupLine's picture

Fucking bullshit!!  I'm sick of the fucking SEC punching the clown and not doing anything about this fucked up piece of fucking shit

Fri, 08/31/2012 - 11:40 | 2752855 YesWeKahn
YesWeKahn's picture

speech recognision works great.

Fri, 08/31/2012 - 11:53 | 2752916 gmrpeabody
gmrpeabody's picture

It's the thought recognition I'm worried about.

Fri, 08/31/2012 - 12:42 | 2753004 pkea
pkea's picture

thought recognition is irrelevant here...

Fri, 08/31/2012 - 13:27 | 2753247 max2205
max2205's picture

By next year we hope the be able to trade the next days bids today.


Love and kisses CMEeeeeeeeeeeeeeeeeeeeeeeeeee

Fri, 08/31/2012 - 11:41 | 2752857 JustPrintMoreDuh
JustPrintMoreDuh's picture

All hail skynet

Fri, 08/31/2012 - 11:49 | 2752903 sdmjake
sdmjake's picture

"trades were timestamped 'before' the bids and offers were even seen in the data"

So either these exchanges were able to generate the 1.21jiggawatts needed to power doc browns delorean or this game is fuckin rigged. All Hail Skynet, indeed..

Fri, 08/31/2012 - 12:05 | 2752957 trebuchet
trebuchet's picture

Dark pool pricing... cuts out milliseconds compared to even colocated servers. trading book in dark pool and exchange makes trade in dark pool for shares heading to the exchange queue, deal gets done but time stamped ahead of exchange listing quoted shares....... ????   



Fri, 08/31/2012 - 12:13 | 2752984 sdmjake
sdmjake's picture

Translation: Rigged Game

Fri, 08/31/2012 - 12:15 | 2752989 Burr's 2nd Shot
Burr's 2nd Shot's picture

In "The Physics of Immortality", Tipler posits that God is really just a giant algo powered by the energy of the universe compressing after reaching maximum expansion. If this is true, the algos really aren't frontrunning Bernanke, rather, they control the output from Bernanke.

Fri, 08/31/2012 - 12:20 | 2753012 ParkAveFlasher
ParkAveFlasher's picture

Translation: Rigged Game

(had to)

Fri, 08/31/2012 - 13:42 | 2753300 mammoth mo
mammoth mo's picture

How long before they can back track days?

Fri, 08/31/2012 - 12:27 | 2753037 fattail
fattail's picture

"fantaseconds" ??  So does this mean i can wake up one day and the ES will be Zero, as Skynet prices in moral hazard and the end of ZIRP and NIRP?



Fri, 08/31/2012 - 11:41 | 2752859 caimen garou
caimen garou's picture


Fri, 08/31/2012 - 11:42 | 2752867 Xibalba
Xibalba's picture

Human traders everywhere are now redundant. 

Fri, 08/31/2012 - 11:44 | 2752868 Abraxas
Abraxas's picture

Somebody makes lots of money on playing numbers. Something tells me that the same entity has more physical than all of us combined (or all of US combined).

Fri, 08/31/2012 - 15:33 | 2753530 4horse
4horse's picture

Somebody . . .

Something . . .


the same entity . . .


                               such bravery astonishes u evel kneivel u absolute fucking daredevil


                          . . . is not only faster than a speeding bullet, then untermenschen but larry lightbulb you've evidently been left competing against einstein outcompeting  t h e-s p e e d-o f-l i g h t






p s y c h i c  these is indeed supreme beings . . .






Fri, 08/31/2012 - 17:23 | 2753901 smiler03
smiler03's picture

Oh shit. The Slewie virus has been unleashed.

Fri, 08/31/2012 - 11:43 | 2752870 not fat not stupid
not fat not stupid's picture

The algo micro-transaction inefficiency door is closing rapidly. Humans may get the last laugh after all.

Fri, 08/31/2012 - 11:43 | 2752872 Cognitive Dissonance
Cognitive Dissonance's picture

It appears that Skynet is alive and well.

Starve the beast........or be its fodder.

Fri, 08/31/2012 - 11:43 | 2752873 Dr. Engali
Dr. Engali's picture

I'm surprised BATS wasn't stuck on zero.

Fri, 08/31/2012 - 11:45 | 2752885 malikai
malikai's picture

I'm surprised BATS still exists.

Fri, 08/31/2012 - 11:43 | 2752874 SheepDog-One
SheepDog-One's picture

Humans youre now totaly irrelevant....have fun with that in the coming days.


Fri, 08/31/2012 - 11:44 | 2752884 Abraxas
Abraxas's picture

The sheep are taking over?

Fri, 08/31/2012 - 11:46 | 2752892 SheepDog-One
SheepDog-One's picture


Fri, 08/31/2012 - 11:53 | 2752915 Yes_Questions
Yes_Questions's picture



Good Dog and +1


Fri, 08/31/2012 - 12:09 | 2752973 Abraxas
Abraxas's picture

It’s written in English. Can’t you read?

Fri, 08/31/2012 - 12:26 | 2753030 Yes_Questions
Yes_Questions's picture
You know what a sheepdog is, right?
Fri, 08/31/2012 - 12:32 | 2753060 Abraxas
Abraxas's picture

It flew right over my head. Thanks for spelling it down for me.

Fri, 08/31/2012 - 11:43 | 2752876 Deep79
Deep79's picture

Sit tight people, they gonna try to squeeze the shorts who got in after J-Hole speech

we could go to 1430-1450ish before the decline begins

either way. dont get margined call, keep a lot of dry powered behind you, cause the decline will take us to 1180ish





Fri, 08/31/2012 - 12:29 | 2753047 fattail
fattail's picture

Puts bitchezzz...... How about a time frame... I'm thinking after Obama dumps Biden for Hillary.

Fri, 08/31/2012 - 13:09 | 2753188 BooMushroom
BooMushroom's picture

This is one of those decisions where his lust for power is beaten by his pathological narcissism. So no Hillary, though it might have been a good move.

Fri, 08/31/2012 - 11:43 | 2752878 pods
pods's picture

Algo boxing is the last remnant of the stock "market."


Fri, 08/31/2012 - 11:46 | 2752888 IridiumRebel
IridiumRebel's picture

Politicians can do double that in half the's a win win, really.

Fri, 08/31/2012 - 11:45 | 2752890 lolmao500
lolmao500's picture

That's pretty fast considering that the average human reaction time is between 150-300 milliseconds.

Fri, 08/31/2012 - 11:46 | 2752891 ptoemmes
ptoemmes's picture

Cleary Bernanke has a fiber optic cable stuck up his ass - and connected directly to the trading bus.

Fri, 08/31/2012 - 11:47 | 2752895 youngman
youngman's picture

This adds liquidity....liquidity from your wallet to their pocket...

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