High Frequency Terrorism

There is a real fear in the markets now and it is not being caused by Europe, LIEbor, Linda Green, London Whales, etc.  The fear is focused on the structure of how prices are discovered and assets/risk are transferred to willing participants.  Bad algorithms have been treacherous in the past, to put it lightly.  The debate has been focused so much on the ways exchanges have destroyed their reputations by selling enhanced data feeds with your trade information in it.  Every time you trade, your order is routed to a given location to be matched and whether it executes AON, filled 100 blocks in 5 minute intervals at VWAP, cancelled and readjusted stop limit, adjustments to limit order prices/sizes, etc, is recorded and given an account number.  This data is grouped and sold by exchanges and market centers to participants with computer capable of processing and utilizing the encoded "enhanced data feed".  This insight into quantifiable market participant behavior is on a material level and could be argued as being insider information.  

Roger McNamee Thinks NASDAQ Are "Not Good Guys"

Roger McNamee is dead on in his short yet passionate discussion regarding all things HFT and the NASDAQ shameless display of behavior during the Facebook IPO grand theft scheme.  One thing becomes very clear in this video which is that our own behavior has potentially saved us for the foreseeable future.  This complete breakdown of trust in the equity market, which is the easiest and most popular market for Mom and Pop to come to, has passed its break point.  McNamee see's no IPO's for the next 5 months, at least.  And although the Chicago boys of the 70s rode their Efficient Market Hypothesis horseshit all the way to the top, markets are still inefficient and oddly, the HFT have driven out the inefficiencies that make the equity markets so appealing to Mom and Pop.

SEC Audit Trail Webcast

More bullshit from the embarrassing slack-style regulator the United States uses to manage the physicists on Wall Street