http://www.bloomberg.com/apps/news?pid=20601039&sid=aFeyqdzYcizc
Sergey Aleynikov, 39, a former Goldman Sachs computer programmer, was arrested on theft charges, July 3, as he stepped off a flight at Liberty International Airport in Newark, New Jersey. That was two days after Goldman told the government he[Aleynikov] had stolen its secret, rapid-fire, stock and commodities trading software['Doomsday Box'], in early June, during his last week as a Goldman employee. Prosecutors say Aleynikov uploaded the program code to an unidentified Web site server in Germany.
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The prosecutor also dropped this bombshell: “The bank has raised the possibility that there is a danger that somebody who knows how to use this program could use it to manipulate markets in unfair ways.”[What???]
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All this leaves us to wonder: Did Goldman really tell the government its high-speed, high-volume, algorithmic-trading program can be used to manipulate markets in unfair ways, as Assistant U.S. Attorney Joseph Facciponti said? And shouldn’t Goldman’s bosses be worried this revelation may cause lots of people to start hypothesizing aloud about whether Goldman Sachs itself might have misused this program? [What's been implied here is tremendous!]
Read more...[...]
The prosecutor also dropped this bombshell: “The bank has raised the possibility that there is a danger that somebody who knows how to use this program could use it to manipulate markets in unfair ways.”[What???]
[...]
All this leaves us to wonder: Did Goldman really tell the government its high-speed, high-volume, algorithmic-trading program can be used to manipulate markets in unfair ways, as Assistant U.S. Attorney Joseph Facciponti said? And shouldn’t Goldman’s bosses be worried this revelation may cause lots of people to start hypothesizing aloud about whether Goldman Sachs itself might have misused this program? [What's been implied here is tremendous!]
2. Massive $18 Trillion Theft Of US Funds By Israeli Backed Network.
http://www.whatdoesitmean.com/index1249.htm
A stunning FSB report circulating in the Kremlin today states that the largest theft in World history has been engineered by the Israeli Security Agency (ISA) under the direction of current Israeli Prime Minister -Benjamin Netanyahu, Australian media oligarch -Rupert Murdoch and the US investment bank giant -Goldman Sachs who have stolen from the American mutual and pension fund account holders over $18 Trillion through a device known as the “Doomsday box”.
[...]
These reports have come to light since last weeks arrest of a Mossad agent named Sergey Aleynikov by the United States; who, these reports say, stole from Goldman Sachs the most “complex and secretive stock manipulating programme ever created” and turned it over to Tzipi Livni, who in turn then gave copies of it to Russia, China and Germany.
Western news reports on the arrest of Aleynikov state that upon learning of the theft of their “Doomsday Box”, Goldman Sachs ordered the US Government to arrest him, but as noted by the Bloomberg News Service, “what was Goldman doing with this programme to begin with”?
[...]
The power that ISA-led Goldman Sachs bank has had over the US -stealing nearly the entire wealth of that Nation- has been devastatingly detailed by the Rolling Stone Magazine News Service in their report titled “The Great American Bubble Machine: How Goldman Sachs Has Engineered Every Major Market Manipulation Since The Great Depression”.
http://www.whatdoesitmean.com/index1249.htm[...]
These reports have come to light since last weeks arrest of a Mossad agent named Sergey Aleynikov by the United States; who, these reports say, stole from Goldman Sachs the most “complex and secretive stock manipulating programme ever created” and turned it over to Tzipi Livni, who in turn then gave copies of it to Russia, China and Germany.
Western news reports on the arrest of Aleynikov state that upon learning of the theft of their “Doomsday Box”, Goldman Sachs ordered the US Government to arrest him, but as noted by the Bloomberg News Service, “what was Goldman doing with this programme to begin with”?
[...]
The power that ISA-led Goldman Sachs bank has had over the US -stealing nearly the entire wealth of that Nation- has been devastatingly detailed by the Rolling Stone Magazine News Service in their report titled “The Great American Bubble Machine: How Goldman Sachs Has Engineered Every Major Market Manipulation Since The Great Depression”.
3. The Great American Bubble Machine.
The Great American Bubble Machine -Goldman-Sachs and the crash
4. Rogue Algorithms And Other Mutually Assured Destruction Program Trading Alternatives.
http://www.zerohedge.com/article/rogue-algorithms-and-other-mutually-assured-desturction-program-trading-alternatives
Why Institutional Investors Should Be Concerned About High Frequency Traders(HFT)
There’s a lot to worry about.
_HFTs provide low quality liquidity.
_HFT volume can generate false trading signals.
_HFT computer servers are faster than other trading systems.
Because most HFT servers are co-located at exchanges, they can beat out institutional or retail orders, causing them to pay more or sell for less than they should have for a stock.
Then there are the “what if” problems that could be created by HFTs.
_What if a regulation like the uptick rule were enacted?
Volumes could implode and stocks that appeared highly liquid could become extremely difficult to trade with wide spreads and no depth in the quote.
_What if a “rogue” algorithm entered the market?
Many HFTs are hedge funds that enter their orders into the market through a “sponsored access” arrangement with a broker. Many of these arrangements do not have any pre-trade risk controls since these clients demand the fastest speed. Due to the fully electronic nature of the equity markets today, one keypunch error could wreak havoc.
Nothing would be able to stop a market destroying order once the button was pressed.
Gives new meaning to the term “mutually assured destruction”
Read more...There’s a lot to worry about.
_HFTs provide low quality liquidity.
_HFT volume can generate false trading signals.
_HFT computer servers are faster than other trading systems.
Because most HFT servers are co-located at exchanges, they can beat out institutional or retail orders, causing them to pay more or sell for less than they should have for a stock.
Then there are the “what if” problems that could be created by HFTs.
_What if a regulation like the uptick rule were enacted?
Volumes could implode and stocks that appeared highly liquid could become extremely difficult to trade with wide spreads and no depth in the quote.
_What if a “rogue” algorithm entered the market?
Many HFTs are hedge funds that enter their orders into the market through a “sponsored access” arrangement with a broker. Many of these arrangements do not have any pre-trade risk controls since these clients demand the fastest speed. Due to the fully electronic nature of the equity markets today, one keypunch error could wreak havoc.
Nothing would be able to stop a market destroying order once the button was pressed.
Gives new meaning to the term “mutually assured destruction”
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