Trader on Bloomberg says markets are manipulated and volumes ficticious

Joe Saluzzi talks on Bloomberg and explains how machine trading is distorting the financial markets.

If your trades are slower than 50ms youre a dinosaur. Do you remember the recent Goldman Scandal? While most in the US were celebrating the 4th of July, a Russian immigrant living in New Jersey was being held on federal charges of stealing top-secret computer trading codes from a major New York-based financial institution—that sources say is none other than Goldman Sachs. The allegations, if true, are big news because the codes the accused man, Sergey Aleynikov, tried to steal is the secret code to unlocking Goldmans automated stocks and commodities trading businesses. Federal authorities allege the computer codes and related-trading files that Aleynikov uploaded to a German-based website help this major financial institution generate millions of dollars in profits each year. The platform is one of the things that apparently gives Goldman a leg-up over the competition when it comes to rapid-fire trading of stocks and commodities. Federal authorities say the platform quickly processes rapid developments in the markets and uses top secret mathematical formulas to allow the firm to make highly-profitable automated trades. The criminal case has the potential to shed a light on the inner workings of an important profit center for Goldman and other Wall Street firms. The federal charges also raise serious questions about the safeguards Wall Street firms deploy to protect their proprietary trading systems. The criminal case began to unfold on the evening of July 3 when Aleynikov was arrested by FBI agents at Newark Liberty Airport, after returning from Chicago. Aleynikov had just started a job with another firm in Chicago, after leaving the big firm in NY in early June. It appears the financial institution allegedly victimized by Aleynikov had alerted federal authorities that its former employee might be up to no good. On July 4, Aleynikov was processed on a theft of trade secrets charge in a criminal complaint that was filed in federal court in Manhattan. As of this afternoon, he was still being held in federal custody pending posting of bail.

Category:

News & Politics

Tags:

• stock market
• fraud
• doomdaily.com
• bloomberg
• goldman sachs
• high frequency trading

[Riddlerx333x]

Boozo? This is probably the most honest trader to speak about the thief that goes on daily.

[AstonMartinbyage25]

@JBSchmoov Right you are!

[JBSchmoov]

he foreshadowed the flash crash of May 4th 2010 @ 4:20.

[high5flyer]

Could that have been this week?