There were some recent articles on a theft of GS trading code. One story reported (excerpt):
“because of the way this software interfaces with the various markets and exchanges, the bank has warned it could be used to “manipulate markets in unfair ways”
My question is: How do they know the software can be used to manipulate the market in unfair ways? And does this have any relationship to their $6.8 billion in second quarter trading profits?
If someone doesn't care how much money they lose they can reverse the objective and trade as dumb as possible to move a market as much as possible for the amount sold. They'd hurt themselves but would also destabilize the market they traded in.