Catching The "Silver Crusher" Algorithm In The Act

Tyler Durden's picture

There was a time when catching the silver "whack-a-mole" algo, or process, or intervention, or manipulation, or whatever one wants to call it, in action was a myth: an urban legend, perpetuated by silver conspiracy theorists. Until today that is. Courtesy of Nanex we now have direct evidence of just what the reflexive market (in which derivative products such as ETFs influence underlying assets) goes to town by taking silver to the woodshed at a whopping 75,000 times per second! From the broken market sleuths at Nanex:  "On March 20, 2012 at 13:22:33, the quote rate in the ETF symbol SLV sustained a rate exceeding 75,000/sec (75/ms) for 25 milliseconds. Nasdaq quotes lagged other exchanges by about 50 milliseconds. Nasdaq quotes even lagged their own trades -- a condition we have jokingly referred to as fantaseconds." Translation: so desperate was the desire to crush silver at precisely 13:22;33, that the Nasdaq order flow directive ended up moving faster than light. Frankly, we don't know about you, but when someone is willing to bend the laws of relativity, just to get a cheaper price in silver, to perpetuate a failing monetary system or for any other reason, we quietly step aside...

From Nanex:

SLV 1 second interval chart showing trades colored by reporting exchange.

SLV 1 second interval chart showing the NBBO
Shaded black if normal, yellow if locked (bid = ask) or red if crossed (bid > ask).

SLV 1 millisecond interval chart showing trades colored by reporting exchange.
Chart shows about 200 milliseconds of time. 

SLV 1 millisecond interval chart showing the NBBO
Shaded black if normal, yellow if locked (bid = ask) or red if crossed (bid > ask). Note the insanely high quote rate in the bottom panel. Chart shows about 200 milliseconds of time.

SLV 1 millisecond interval chart showing the quotes and trades from ARCA (red) and Nasdaq (black).
You can clearly see the delay in Nasdaq quotes, yet their trades aren't delayed at all. Chart shows about 200 milliseconds of time.

SLV 1 millisecond interval chart showing the quotes and trades from BATS (purple) and Nasdaq (black).
You can clearly see the delay in Nasdaq quotes, yet their trades aren't delayed at all. Chart shows about 200 milliseconds of time.

SLV 1 millisecond interval chart showing trades colored by reporting exchange.
This chart shows approximately 150 milliseconds of time.

SLV 1 millisecond interval chart showing the NBBO.
This chart shows approximately 150 milliseconds of time.

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Burr's 2nd Shot's picture

That's craziness, the dude in the coin shop doesn't even speak that fast.

SilverRhino's picture

I stopped worrying about rises and prices about 6 months ago when I saw it move from damn near 6 fucking dollars in minutes.   Stack it, eventually this thing called the USD is going to detonate.  


Crab Cake's picture

Historically when its ten till midnight, gold and silver ownership is outlawed. My bet is that this time around the rhyme tptb will close the noose by outlawing all non electronic transactions. They will try this, theyre already pushing and selling it. They are trying to build the new Ponzi right now.

Viva la revolucion!

Xibalba's picture

How long until JP Morgan takes down this post?  

Robot Traders Mom's picture

Fuck JP. A bunch of pikers...


Seriously, Zerohedge is fucking changing the world. Our country is based of economics and I'm all for making Tyler the head of the Treasury when our country resets.

Malachi Constant's picture

I'm all for making Tyler the head of the Treasury

It doesn't matter who occupies the seat—it's the seat itself that perverts the law. They have this hub to avoid the tedious job of corrupting each individual spoke. Want change? Quit an hierarchy.

akak's picture

"Quit a heirarchy."

But agreed.


(I could not give you an up-arrow due to you having started your post with a quote from another post.  But I would have if I could.)

XitSam's picture

I gave him one for you.'s picture

Why are some blocked and others not? A question for the ages, I suppose.

XitSam's picture

Using the browser and a mouse it doesn't work.  If one looks at the html, it is pretty easy to work around.

Bringin It's picture

Crockett - Post that begin with italics can not be voted up or down from most browsers.  Strange bug.  Sacralidge!!!  Oh !!'s picture

But it seems that XitSam is saying that he can vote on those items by playing with the html. Note that one person did up vote the post by Malachi Constant in question above.

When I find that one of my posts in not votable I can edit it by clicking on disable rich text and remove the code before the quote that interferes with voting. But I wouldn't know how to alter someone else's post in such a way unless I were to view the source, edit and save it and then vote. Not sure if that would work.


PS - I think I figured out how to do it. The post by Malachi Constant now has two up votes.

AldousHuxley's picture
  gruseom 636 days ago | link | parent

Nanex is a data feed company that was started by Eric Scott Hunsader who is one bad ass programmer and, based on my limited interactions with him when I used to program against a previous API he designed, a decent person. He was able to deliver results back then that other people couldn't dream of, and Nanex (called GenerationV at the time I think) was his "build it all again from scratch based on what you've learned to date" data feed engine. It's interesting to see the name come up here. How big of a player are these guys?

brownegg 636 days ago | link

They're not, really. Not on the HFT landscape, anyway. It's tempting to say they're being slept on, but the cream rises to the top VERY fast in HFT--there have been multiple instances of products brought to market and the company being purchased outright by the first would-be customer (although this is much, much more frequent on the networking and hardware sides).

I think the analysis and borderline-accusation of what is termed "insincere quoting" by the exchanges is... laughable. It doesn't speak well to the authors' knowledge of their industry. I've had an exchange disconnect my session for sending 1000+ orders per second by myself, and I would have been quite happy to execute any of them (or else they wouldn't have been sent). To be honest, I'm surprised 5000 is the biggest number they could find. I would have guess an order of magnitude higher.

What happened on 5/6 was that the NYSE finally learned that they aren't the boss in the equities markets anymore. Trying to slow down trading without regard for the other routing destinations was nothing but quaint.

You know those videos you see of suburban shoppers at 6:00a on Black Friday, rushing through the doors to get one of the three available Xbox 360s or whatever? The NYSE was the hapless security guard whose watch was slow telling everyone the store wasn't open yet.

smlbizman's picture

i think that is rock fish on the second shoal at 22 ft. ....

oh this isn't bill dance's fishfinder course?..never mind..

GetZeeGold's picture





Nothing to see here.


The CFTC is on the job.


Pinto Currency's picture



Reform the monetary system before we are all pitched into chaos.

Enough is enough.

Mentaliusanything's picture

Charge the Flocker's a penny a trade.

Make the Flocker's pay to play.

Instant Karmas going to get them.

Upside - the Debt gets a transfusion

Downside - You Fuck the Flockers

Balls - BIG BALLS is what we need to kill this infection

strannick's picture

The Silver Crusher Algorithm is a computer selling a paper silver fraud instrument (SLV) on a paper silver fraud unregulated exchange (COMEX).

Needless to say, when solar panel makers and the military, -not to mention fiat currency malcotents -want silver, they will be gettings something a little more, shall we say, physical?

rocker's picture

Excellent thought. Just like JPMorgan.  Short the paper, buy the physical. They do the same on a grandular scale for Platinum and Palladium.

Cadavre's picture

2 Quests:

1) The resolution is amazing - where's does Nanex get this kind of detail.

2) In the charts showing black bid = ask ticks, were those those traded or canceled. Easy to imagine, at these kinds of throughput rates, despite the fat pipe connecting  collocated HFTs to exchange trading object, there will be, on occasion, packet jams, Not beyond the realm of possibility an algor is early for own feigned "delayed by traffic" price discovery "ask".

Maybe a short squeeze so contractors working Skynet's newest 2 million square foot 2 Billion Smacker Citizen SpyOp project in Utah can get a better price on silver. The complex is way cooler than Solendras' offices All that mil-spec`d circuitry needs silver (very hot solder - lots of care reuired to assure the IC laminate don't get waxed) where the pins hit the boards. Lot's of silver in Utah,

What are they so afraid of? Who knows - maybe Anonymous will get cube space there and keep us informed (.... right).

Been stacking Libertads myself.

WonderDawg's picture

Actually, "an hierarchy" is grammatically acceptable, as is "a hierarchy". However, your spelling of "heirarchy" is in violation of the "i" before "e" rule, and is incorrect. You lose, but thanks for playing ;-)

akak's picture

I always learned (and observed) the rule that one uses "an" before a word beginning in a vowel, "a" before a word beginning with a consonant (sound).

Since "h" is a consonant, it should take "a" and not "an", correct?

BooMushroom's picture

The difference is due largely to the British not being able to enunciate. 'Ere, 'ere, 'ave an 'ot dog! An 'inge 'olds the door on.

Since its pronounced like a vowel, it gets preceded by an "an" instead of an "a." Still wrong, but that's why you see it.

WonderDawg's picture

"A" or "an" is acceptable preceding a word beginning with "h".

Cadavre's picture

But it so discomforting to "an horse", "an house" "an hullabaloo"

Works with "an Hawaiian" - but so do "a" - case by case it.

TheFourthStooge-ing's picture


"A" or "an" is acceptable preceding a word beginning with "h".

Only if you're British and nobody never learned you no good English.


Cadavre's picture

The red coats speak English? Don't that beat all! So what language do Welsh speak?

Swemson's picture

Ahhhh England...

Where every boy has a chance to grow up and be queen!


i_fly_me's picture

After the collapse, when your community begins to realize that almost no one bothered to maintain any proficiency in basic low-tech skills, you two will be in high demand.

Cadavre's picture

Dimes and quarters stamped in the 50's may have been 100% silver. At some point they started making silver Oreos with a thin copper "cream" filling (maybe after Kennedy's secret service forgot it's mission). Don't know details - but over time the "copper" filling got fatter (used regydrogenated copper with corn syrup) and the silver "cookies" got smaller.

cranky-old-geezer's picture



Our country is based of economics and I'm all for making Tyler the head of the Treasury when our country resets.

What reset?  There isn't gonna be any reset. 

For a reset to happen the current government would have to be seized and dissolved.  That's not gonna happen.  The American people don't have the guts to do it, and the military is too sold out to do it.

Weimar style hyperinflation is where we're headed.  Bernake will keep right on printing untill the dollar loses world reserve currency status, drops like a stone, the economy implodes, America sinks into 2nd or 3rd world anarchy, and the government goes into full police state tyranny to control rioting masses of sheeple.

That's America's future. 

Crisismode's picture

Dream on.


Not gonna happen in your or my lifetime.


Everbody keeps calling a major dropdown happening shortly.


Nope. They can keep this Ponzi going for a long, long, long time.


Remember the quote:


"The market can remain irrational for a lot longer than you can remain solvent."



joe6px's picture

I disagree.  The fact that we have bombed our way into the last three wars based on the petro-dollar dictates that the next war must be with Iran because the Islamic State has accepted alternatives to the dollar in payment for oil.  It is that simple.  Sadam did the same, Qudaffy did the same....and the Afghani's need a pipeline.  If the...we...the good-guys...the bad guys....lose our ability to print currency to pay our imanginary bills with other people's money...well we just may have a real problem.



The rabbit in the hat is the real economy...and that can not improve without an increase in real production, ie, the production of goods/services....and the 4th generation on great things..that is INFORMATION, has turned into spying and Indian customer service lines.  Please, kind sir, direct me to the recovery.


Cadavre's picture

In Honduras the control is concentrated in urban areas. The US is a high tech integrated network that eventually ports some commerce to the population centers. Weaknesses at any node can cause system wide failure. The commons is a roach nest - they can treat and step till the rooster crows and all they would accomplish is working up an appetite for food they depend on the commons to be delivered.

The infrastructure of the US is not the same as those we've allowed to be bombed. Look out your window. Cell towers, relays, power lines, zillion lane highways. All that stuff is woven through, maintained and invented by the commons. It is the creativity and knowledge of the commons that keep it all together. The criminals feed, and profit, at the pleasure of the commons, from production to delivery. The commons quits doing what only it knows how to do - what they goona do?

The goal is not to engage in a glorious blood letting fight where the assets belonging to the commons could be destroyed or stolen (like the museum at Ur in Iraq).

The goal is to win. The gold is to preserve the commons assets - the stuff our parents gave to us and the stuff we obliged to pass to our children.

The legal weaknesses in our rules that allowed a bloodless coup by the white shoe boys will need to be addressed. Justice for crimes against the republic by those trusted with the commons authorities, must be allowed and thorough. Without justice, the republic is just a whore pig with lipstick on.

All the commons would need to do is we have to do is collectively nonviolently demonstrate their collective awareness and the white shoe boys would be grabbing for the commons zippers, on their knees, just like they do when the pimps bag man cums a calling.

We get angry - bitch - publicize - that raises awareness. It is also a good diversion. Think about it:  Inside our rank and file civil and uniformed service employees implement dictum sharted by the white shoe crowd. The "record" espionage act whistle blower cases Bambi is pulling out of his ass may be just the tip of an iceburg. Our rank and file employees are the only people holding this mess together. The white shoe boy politicians and sayans partners are so dulled by their rut, that reality is an alien concept to them. I would bet the politicos fear what may be going on inside the rank and file they have to rely on to implement their crimes much more than they do the commons.

Coups and provisional governments are preceded by resentment of the commons - but in most cases, the "take back" is executed by uniformed and civil service employees, the spawn of the commons. You some of them may even have the home addresses for every Xe Merc being paid through the extractions from the commons. Anybody dirty inside the cloistered cluster fuck of rut the white shoe bathhouse sluts are running should be very worried - not bout us - but our loyal rank and file civil and uniformed - shit they know where the accounts are - where the transactions are - where the skeletons are - and they real good with guns.

cranky-old-geezer's picture



Not gonna happen in your or my lifetime.

You're the one dreaming. 

It might well happen in 12 - 24 mo, and Bernanke won't be able to stop it.  He can't control how the rest of the world views the US dollar.

Sheeple like you hope it won't happen, so your worthless kids can have a future.

I don't give a fuck about your worthless kids and their future, and neither does anyone else.

RafterManFMJ's picture


His kids will have a future - digging slit trenches under fire in our WOC (War Of Choice) number 34.

fockewulf190's picture

No doubt, the real reason China has been buying physical and shipping ton after ton back to home base is to win the true war...and that is to wrest contol of the world's reserve currency status away from the US.

The only way that can happen is if the Chinese Yuan is backed by massive amounts of gold and silver. International trade will simply migrate to the CY just like deer trotting over to a salt lick. The Chinese won't have to declare that they now posess the world's reserve currency, it'll just be a gradual process that happens over time, slowly changing the way international transactions take place, and the dollar is eventually dethroned.

Once that happens, the financial engine that supports the US military will
cause massive drawdowns...especially to the Navy. Taiwan is then easy pickens.

DeadFred's picture

I remember last summer how many posts I read as the HFTs beta tested their newest market crash algos. It wasn't long until they put them to use. Get ready. It won't be silver they flex their muscle on. All your AAPL are belong to me!

smiler03's picture

Sorry but this evidence is far too late to be considered for the investigation into manipulation of the Silver market which started three and a half years ago.

Nothing to see here, move along.

joe6px's picture

they can't touch appl, to do so would spell decline!  There is one shining light in the market, so why douse it?  The only real decline in Appl is profit taking...they make a big deal of it in the PM's...but apple gets a pass because it perpetuates the fraud....I mean the market.  So sorry central planners...

TheFourthStooge-ing's picture

Crab Cake said:

My bet is that this time around the rhyme tptb will close the noose by outlawing all non electronic transactions. They will try this, theyre already pushing and selling it.

Oh, my, that would certainly be a grand display of antiwisdom! Unless an electronic transaction system, from the very day of its inception, was completely free of of all vulnerabilities, it would be a disaster waiting to happen.

This includes software vulnerabilities, electronic vulnerabilities, and weaknesses in the physical infrastructure. It applies to all nodes and links in the system, from "consumer" identification tokens and point-of-sale end nodes to corporate and government servers, as well as every network device and segment and every communication and transaction protocol.

If it is not perfect from day one, it will fail. Due to the potential gain that a successful exploit could provide, it will become the most frequently and persistently targeted system on the planet. This doesn't even take into consideration the integrity of the people running such a system.

Imagine the hilarity which would ensue if the only legal transaction system stopped working at precisely 11:59 PM (23:59) on Thanksgiving day. Nobody could do any Christmas shopping unless they were willing to break the law and participate in the black market. Good luck buying groceries, filling your gas tank, and paying any bills.

They are trying to build the new Ponzi right now.

It's the only game they know.

The system is self-immolating.


FeralSerf's picture

They're working fast and furiously to eliminate currency from the system as we speak. Your new Ben Franklins will be just bits on a plastic card it they get their way. Someone probably has a plan to make plastic gold and silver too. It solves a lot of problems for TPTB.

LowProfile's picture

Only problem with that is aaaaall those paper dollars out there (coins too) out busy in the cash market come home to roost...


Umh's picture

We will get about two months to turn in all of the physical money before the STATE declares it worthless or in the case of the nickle more.