Skip to comments.FBI Investigates Legality of High Frequency Trading
Posted on 04/03/2014 5:39:35 PM PDT by Kaslin
The bloom is about to come off the High Frequency Trading bloom, but only after billions and billions of dollars were skimmed off trades.
(Excerpt) Read more at finance.townhall.com ...
Really amazing how the FBI takes action AFTER word of this filters all the way down to Joe Six Pack amblin’ down Main Street.
Cut their budget 90% —we wouldn’t notice.
A day late and a few billion dollars short.
several rooms with balconies already rented for one last swan dive by sleazy traders....
Amazing. This has been going on for at least 5-7 years, with hundreds of overt examples video-documented by the folks at Nanex....and suddenly...somebody mentions it in the news at the J6P level and it’s new news? During that time, it’s discovered that the investigators at the SEC have been spending most of their days watching porn, nobody is prosecuted, not even any charges brought.
It’s getting harder and harder to say anything about anything any more. There’s hardly a stick of morality or law enforcement outside of citizen oppression left.
FBI pretends to be relevant.
the solution to the non problem will be raising the minimum wage to mitigate inequality
The FBI has become a joke. The MSM touts them as crime fighting experts yet the Russians tell them the the Boston bombing duo are terrorists and the best they can do is send some retard over to ask them “Are you terrorists? No. Well, OK then, we’ll just move along”. The SEC and FBI will play a game of “play with your buddies’ wee-wee” and then Eric the Corrupt will drop the case. Sort of like Eric the Corrupt is all over the Government Motors bankruptcy fraud.
As usual, Famous But Incompetent are on the case a day late and a dollar short.
I saw what you did there.
You can’t tell me that Goldman Sachs isn’t trading in front of the 85 billion per month in quantitative easing stock purchases. If the FBI wants to investigate something than investigate that!
I know...won’t happen. Ben Bernanke was the former CEO of Goldman Sachs and the architect of QE-2-infinity.
Longer than that. Much longer.
This is the main reason I've stayed out of the market. It's all rigged against the little guy.
Lots of money flows into the accounts of these “traders”. Where does this money come from? They aren’t producing a product.
I am admitting ignorance here but I think it’s a question worth pursuing.
I like how the crooks say their big benefit is providing liquidity, when as we see weekly the very opposite is true, as bids simply completely vanish and a $30 stock drops to a dollar for a couple of seconds.
I think this issue is overblown, and you can be sure that none of the rich Democrats will be hurt.
Anyway, can’t touch my investments... peanut butter, canned tuna, and a large supply of kibble for our 8 legs of security. Nothing quite like a large black dog with shiny white teeth to discourage unwanted visitors.
The money is made by front-running the market. The HFT traders are wired into the exchanges in such a way that they can see orders coming into the exchanges before other clients of the exchange can see them. The HFT’s can “paint the tape” such that other traders see an order flow that will not exist in a sub-second time, and thereby they can gain an advantage of mere fractions of a cent on the actual price at which the orders are filled.
Multiply this by millions of trades per month and you get a steady fleecing of the customers of the exchange.
The supposed quid-pro-quo that the HFT’s are offering to the exchanges is “liquidity” or “market depth.” The “flash crash” of 2010 showed that the HFT’s flee at the first sign of real trouble in the markets - so much for their promises of market depth.
What about investigating H0lder’s high frequency use of gov’t planes for personal business?