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HFT Quote Stuffing Market Manipulation Caught In The Act
Now that we can directly monitor the amount of quote stuffing in the NYSE courtesy of Nanex (an ability that the SEC apparently never will have), we know that every time there is a massive spike in hollow trade (as in without intentions to cross bids or asks, something everyone but the SEC and the HFT lobby believes should be a felony offense), the market is programmed to either rip of plunge. Sure enough, at just after 3:19 pm we saw an epic spike in empty packets on the NYSE, which set off red flags and immediately prompted us to observe the move in ES, which naturally confirmed that an HFT driven coordinated buy order (no block) was going through and pushing the ES well on its way to VWAP. Market manipulation no longer needs anything more than a coordinated packet stuffing dump, as what happened on May 19. Keep in mind: these work on both the upside and the downside- the reason why suddenly everyone hates HFT after loving it for over 2 years, is that while it provides volumeless levitation, it just as easily can serve as quicksand in a downmarket. That, however, does not make it right, and just as two years ago, when we first brought attention to the matter, so today, we claim that HFT should be abolished immediately by the imposition of a minimum active quote latency. That would eliminate all quote stuffing and HFT market manipulation in a millisecond.
HFT quote stuffing spike:
and ES response:
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As per the WSJ, the SEC is too busy looking into Hydraulic Fracking to worry about such things as 'market integrity'
Break the fucking code, bitches:
https://sites.google.com/site/primenumbertheory/
Bring the house down!
Ahhhh yes, the good ol'days where we would put in orders and have to wait 5 minutes to cancel them...try teaching that to the 19 year old algo engineer
Organize a mass, coordinated onslaught of buy and sell limit orders that are 20%+ off the last tick.
we'll call it "420"!
oh. I see. Apparently that's been taken. How about "666"?
And there you have it..100 successful "trading" days in a row.
That's too obvious, Call it "999".
Seriously..... Everyone knows this is going on and you are absolutely right, it should be a felony offence! Surely there is a way to lobby against this!
Hi, I work for the SEC. Sorry, was looking at porn on the Internet and missed seeing this move.
Dude, looking at porn would be an improvement to what they have been doing since at least 1993;
Rolling Stone Magazine Matt Taibbi article link:http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-st...
I was wondering if y'all caught that. It was a wild move.
Red handed bitches.
I hope algo's bought Bac at 8.80 this morning - flash ramp seems totally allowed?
Without HFT, ZIRP, and the FED's invisible iron fist, we'd have a DOW of about 1,500 or so.
at least (True Value).
I just think the Money Printer will step in before we ever retouch the previous lows of March 2009, even though I don't expect QE 3 to come for at least another 6 months or so.
You're assuming they will retain some moderate amount of control. How good is that assumption? What if they don't? For the last month I've been throwing out a number of small 'crash bets' aimed at making money when and if the market totally tanks. With the HFT issues I'm guessing that there is a significant chance we will see a stop trading day sometime this year. Mostly I assume it 1-200 bucks I'll never see again, but a couple of those trades during the post debt ceiling free fall were good enough to let me keep doing this all year long. My point is that I think there is a real chance the market manipulators will completely lose control for a period of time and promises of free money won't be enough. (For what it's worth I have a crash bet for tomorrow, in case Uncle Benny disappoints, 2 NDX weeklies at 1950, $100 total)
I think we're turning Japanese, I think we're turning Japanese, I really think so.
1989 - Nikkei =39,xxx
2011 - Nikkei = about nothing
21 years of devasting NOMINAL declines, and even MORE MASSIVE real ones.
As long as VZW strikers, I mean workers get their due...this really isn't a problem.
Madoff: <I'm a victim too...>
http://www.entendance.com/forums/viewtopic.php?f=6&t=776&p=18970#p18970
SEC = just another tenticle on the criminal beast that owns you and your children... and will own your children's children also.
Is it time to get angry yet? Or does Obumma need to personally come around your house and take a dump on your wife's face?
Im just concentrating on getting away from this head on train wreck that everyones on and thinks will end ok. Screw all this, let the sheeple go down.
BTW most americans seemingly would be only too excited to have the honor of Obama coming over and taking a dump on their face.
An Obama Steamer. Finally someone to take that moniker away from Cleveland.
By the way, how much water would you recomend to have on hand for a family of four?
I have a well, and also a couple Katadyn expedition water filters. Water is too damn heavy.
My well does not work without electricty. Yours does?
1 gallon / day / person should do it. Or a well, lake, stream, spring......
Use JohnG's amount, and 5 days worth, at least. Was out for 9 days after Charley on electric. Thank god for showers on bots.
I live on bottled water as the wells in my area are not good. You need at least 2 to 3 gallons a day for a family of 4. Remember that you will need bottled water for cooking rice, noodles, cooking vegtables, hard boiling eggs, coffee, making iced tea, just regular drinking, water for pets. You may also want water to take sponge baths. Also, do not forget you may need water to clean plates and pans, etc. You would be amazed how much bottled water you need when the spigot is turned off.
Rememer to fill lots of jugs of water for flushing your toilet also. Where I live the well does not work without electricity. So, keep about 6, 2 gallon jugs of water just to flush your toilet. Do not pour the water in the tank, just in the bowl. Works better.
I have been without electricity for at least 4 days and it is a bummer. Without running water or the ability to flush your toilet it gets a little harry to say the least. Be prepaired.
Duplicate.
How much midget porn you have to watch in order to miss this and do nothing? Good job SEC!
They are all too busy cruising ZH with their topless avatars.
and some people say they don't really provide any public service whatsoever.
Maybe, if Mary Schapiro could just halt her year long meetings with criminal syndicate Wall Street bankers about what SEC laws they prefer her to ignore and which ones are ok to enforce, maybe Mary Schapiro could drop by Nanex and get a fucking clue as to what is going on in this Pachinko market. Free market capitalism, Mary?
Holding my breath...
Just waiting for the stress to snap the Titanic keel, then it all plunges down quick. Not hoping for the pirates to come clean here....this crap has gone on way too long man.
Dog,
Check the sheer f'n stupidity on P after hours. What kind of fluoride eating morons are at the helm of the algo ship?
I hate it all, the tide has gone out a mile and everyone is partying on the beach...even dumb ox head for the hills when the tide goes out a mile Im clearing out of here.
Built like the Titanic, go down like the Edmund Fitzgerald
So whats with this last little market dip before todays close, the go-ahead ticket for Bernank tomorrow?
They rather ban the evil shorters first though
Those f*ks ripping-off US Markets now, while EZ closed at higher note, after initial dump.
1) Reinstate f* Uptick rule and
2) charge 5c-10c for each extra quote over (50 in 1 min), done deal.
Everyone is just talking and nobody doing anything about it.
FTC/SEC probably getting some bonuses of those criminals
while loading up Porno on .GOV computers..
Every market trade must be executed with a CAPTCHA answer....all problems solved immediately.
Nah thats too easy though, and people wouldnt get paid for looking the other way while surfing midget porn.
On a slightly different note, am I the only one that feels CAPTCHA is trying to communicate with me?
Yea I get some weird CAPTCHAS sometimes. I got one that said 'blOwBoY' the other day....WTF is THAT supposed to mean??
Did anyone else see Schwab is suing Citi and BofA for LIBOR manipulation?
And we have no one out there, everybody on f* vacation
EZ and US included, while everything falling a part.. f* that!!!
Those crooks should be behind bars instead, until they figure out
the solution. Hussein Barobama playing Golf, why should he care.
17k ES in 60 seconds is "volume less"?
Couldn't be that the ES spike caused the qoutes to go wild, could it? No.. the only allowed explanation is that quote stuffing caused ES to spike! Vice versa is just unthinkable.
you can't be serious with this nonsense. "es spike caused the quotes to go wild" - LMFAOLOLOLOL are you fucking kidding me? does the sec pay you by the post?
I'm setting up an HFT ETF. All 0H members can get in on it before I go public at insider discount.
Traded it.
In engeenering, we say " if it is not broken, dont' fix it".
Harry Markopolos quote (numerous times he told the SEC Bernie Madoff was gaming the system, and nothing was done)
"If you flew the entire SEC staff to Boston, and sat them in Fenway Park, they wouldn't be able to find first base."
The corruption is apparently everywhere. if nothing is done.
Keep reporting this, Tyler.
Harry drew the SEC a f#*king map. He told them to go to madoff trading desk and ask to see trades, there weren't any. Ponzi exposed.
What a waste paying the SEC billions to do ZIP.
The purpose of the Govt is to pretend to fail!
http://www.youtube.com/watch?v=Fsubt_gdeBA
Uploaded by RussiaToday on Aug 25, 2011
This time Max Keiser and co-host, Stacy Herbert, discuss the Fainting Bankers of Wall Street and the myotonic markets they inspire. In the second half of the show Max talks to Chris Martenson about the insolvency of the banking system and about Dr. Bernanke's misdiagnosis of the cause of the financial crisis.
OMG cant have that! Nah these days its all simply about how much more the Maniacal Monetizer will gift for free to the pirate criminals of Whore St. Nothing else matters, reality is gone forever this is the 'new normal', or so Im told.
Weird how the fact that QE is a failure, everyone hates the rigged system now, and Bernank has been proven a total failure is suddenly not even a factor?
No, the wizard overlords are putting on their robes and shall speak again soon...
Wall Street Aristocracy Got $1.2 Trillion in Fed’s Secret Loans
http://www.bloomberg.com/news/2011-08-21/wall-street-aristocracy-got-1-2-trillion-in-fed-s-secret-loans.html
PLUS!!!
SEC Covering Up Wall Street Crimes?
http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817
How dare you point out this blatent corruption. Didn't you get the memo on 9/11 that all crimes henceforth are not punishable due to National Security.
Bow down to your masters and eat your peas boy.
Max says Eat the Rich! "Skewer the Banksters!"
Can we all just agree to eat the rich? (if you dont have a sister ship to your 200'+ boat and multiple leases with GE for your jet engines, you are not rich so shut up)
Can we all agree to Skewer the Banksters?
Well for whatever reason, equities sure didnt end the day on a QEuphoria high note.
Imo "they" stepped aside thus keeping their powder dry so they can juice the market tomorrow.
We'll know what the pearls from Bernank are before market open. I wouldnt bet on QEuphoria myself, but go ahead if you like.
Fwiw - when I refer to "they" I'm thinking of PPT, FED, banks and other entities which have been and continue to be manipulating the market to keep it from falling through its asshole.
As for me I'm on the sidelines just watching the show and hoping I don't get trampled underfoot.
Can someone tell me if I was a victim of HFT this AM?
There was an offer at .25. I bid .25 (x100) and the offer went to .30. I "paused execution" and offer went to .25. I resubmitted .25 and offer went to .30. This happened about six times. The offer always moved exactly simultaneous to my key srokes.
IB customer service does not even show this activity in their times & sales, although their cust service rep witnessed this once as it occured in real time.
Any thoughts ZHers?
pretty simple order read algo...as ur bidding ib's internal mkt making reads ur order and possibly ur order id number....realizes what type of custy u are and then merely backs away from the mkt in hopes u pay up.....much luv for ib....i've been with them for 7 yrs......the option mkt maker arm of the shop r really scum....oh p.s. u def. were the victim of an hft pocket pick......try trading an active stock or semi liquid futures onctract.....the algo's will back away from ur bid/offer or front run u death.....xooxxo
Really appreciate the reply. I've been trading for years, worked on the Comex, but never saw this happen before. I will consider leaving Interactive Brokers and bring my business elsewhere. I also told them I did not want a fill, just an explanation of what was going on. Something was definitely "in" my computer. Also, a supervisor never bothered to return my call.
it's called running away from the bid and it happens to everyone who plays in the rigged casino.
Hmmm ... basic 'bait and switch' ... no?
I thought THAT practice was outright illegal ..
Hey PIGGIE!!
GREAT! Job!!
SEC Covering Up Wall Street Crimes?
http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817
dont forget to arrest those poor people!!!
Now go get some poor black kid with a handful of dime bags of weed off the street.. while the Country is ROBBED in Broad Day Light for TRILLIONS!
Wait.. here it comes.. thats NOT your Job!! Sworn Law Man???
This has been going on for years. Had an e-tard account many years ago and they frontran me manually (more than likely the market maker) I called e-tard and told them I would cancel my account and sue if they didn't reverse the trade.
They did !
This is one of the reasons I abandon the market. With the help of ZH I woke up out of my paper induced coma. Been sleeping well ever since.
Thanks ZH !
AAPL is a screaming BUY...Goldman was right...Tyler.... amazing
Let them eat cake Bitchezzzz
http://www.marketwatch.com/investing/stock/kkd/overview?link=MW_home_lat...
KILL EM ALL...Metallica
http://www.youtube.com/watch?v=EPA2rEsIgSU
No Remorse - Metallica - Kill 'em All - Studio Version - HD
surfs UP!!
http://radar.weather.gov/ridge/radar.php?rid=AMX&product=N0R&overlay=11101111&loop=yes
tomorrow after the rain passes will be SWEET!
"I LOVE IT WHEN A PLAN COMES TOGETHER"...A-Team
You can just feel the fucks squirm...when the $ is worthless...45, 55, 65Billion DOESNT MEAN SHIT.....NO?
Just ask Thrusten Howell the 3rd!!!! worthless..
When $1 trillion is considered chump change like now for example, you know its screwed.
Gold makes $200 24 hour U-turn, unbelievable enough in itself when gold was $400 only a few years ago....equities down but not much for the day...no clear indicators of QE but the insiders will have the news by early pre market no doubt, we'll see in the morning.
makes the down days fun to watch.
it's all fun and games...til someone pokes an eye out.
Then its f***ing hilarious.
> imposition of a minimum active quote latency
Thank you ZH.
Simple fixes to level the playing field are really all that the exchanges, and the political system, and the world, need to redirect human energy to productive purposes. I happen to believe that anyway. So thanks.
Yeah, even one whole second would work for me. I will try to avoid Philly options exchange or is it IB I need to avoid?
"You can fool most of the people most of the time but not all of the people all of the time"
good luck turning off the computers. can't wait until they try to shut off on the downside only. critters.
Who though the HFT could actually excentuate the move down. Now, they do not like HFT and want to get rid of it. It was OK when all it did was buy the Market. Now, the HFT is selling the Market everyone has a problem with it.
On another note. With Bernanke out of the Market, at least for now, I am starting to be able to make a little money in the Market Trading. Hope it lasts.
Sorry, duplicate again.
"That would eliminate all quote stuffing and HFT market manipulation in a millisecond."
Impressive. And, incidentally, 900,000 times faster than Bernanke can stop inflation.
We love to hate HFT's quote stuffing bizarro trades (inverse bid/offers)...But what we want for them to start doing is creating wider volatility ranges - F*ck it up a bit more so one can swing trade with the peaks and troughs.
Adapt or die.
That it would ZH. All you need to do to stop HFT is introduce a latency limit. It's a problem of condensed time. They can do a year's worth of trades in a second. So, set time limits. It really is a simple answer to a nasty way of manipulation. Latency = speed limit. But then for the dumbasses, we're 'adding more regulation'.
It's not about more or less regulation, it's about the effectiveness of it. With effective regulation though, many times that does mean it's numberwise amount, less, even though it's more. But it's not less regulation, it's actually more. People that fall for the bullshit between the lines doesn't realize it's just like a matter of Bill Clinton and the meaning of 'sexual relations'.
at least it's on the exchange. when you talk about CDO's and CDS's these are "inter-bank" relationships with no oversight whatsoever. When you add in all the front running vis a vis the various electronic "information devices" and obviously it's really hard to look at the HFT which may/may not provide any market value whatsoever as far from criminal. It would appear they all have the same "buy Treasuries" default as well.
http://www.youtube.com/watch?v=NHWjlCaIrQo&feature=player_detailpage