Tag Archives: whistling past the graveyard

High Frequency Trading = The rise of the machines … And the SEC does nothing

Examining high frequency trading … An excerpt from > There’s millions in those milliseconds:

“Look,” says Sergei Tchetvertnykh, pointing at a flashing spreadsheet on his desktop’s screen. “I just made $82,000 in one second.” …

The high-frequency traders’ supercharged computers haven’t blown up markets—yet—but Caldwell says they have blown up individual stocks. Exhibit A: the investment bank Bear Stearns, which folded after its share price plummeted in March, 2008, even though then-SEC chairman Christopher Cox assured the markets that the firm was sound. “Bear Stearns did not commit suicide,” says Caldwell. “It was murdered.”

Jon Stewart understands the game … why can’t the SEC? (watch video): http://www.thedailyshow.com/watch/thu-march-4-2010/scott-patterson