I posted a couple weeks ago, the way the algos flip BAC for absolutely ZERO price up or down. Just flippin for the rebate....... This just add fuel to my fire haaa
Submitted by Tyler Durden on 11/04/2012 13:41 -0500
BAC
Bank of America
Bank of America
Ford
HFT
Keycorp
Market Crash
Morgan Stanley
None
Quote Stuffing
Reg ATS
Reg NMS
Sirius XM
Back in the summer of 2010, when the SEC was still desperate to (laughably) scapegoat the May 6 Flash Crash on Waddell and Reed, in an attempt to telegraph to the public that it was in control of the HFT takeover of the stock market (an attempt which has since failed miserably as days in which there are no occult trading phenomena have become the outlier and have resulted in the wholesale dereliction of stock trading by retail investors), we first presented and endorsed the Nanex proposal that the flash crash was an "on demand" (either on purpose or by mistake) event, one which occurred as a result of massive quote stuffing which prevented regular way trading from occuring and resulting in a 1000 DJIA point plunge in minutes (the audio track to which is still a must hear for anyone who harbor any doubt the market is "safe"). It turns out that in the nearly 3 years since that fateful market crash, not only has nothing been done to repair the market (ostensibly broken beyond repair and only another wholesale crash, this time without DKed trades, and bailed out banks, could possible do something to change the status quo) but the Denial of Service (DoS) attacks that HFT algos launch, for whatever reason, have become a daily occurrence as the following demonstrations from Nanex confirm beyond a shadow of a doubt.
And while none of this is surprising: after all why should the algos and their HFT-coding masters change their ways if the SEC still has no idea how to approach and regulate a market that is fractured beyond comprehension in the aftermath of Reg NMS and Reg ATS, what the below data also confirms is what we noted two weeks ago, namely that "stock market fragility is rapidly approaching "flash crash" levels." The only question is whether anyone will even notice, or care about, the next inevitable 1000 point DJIA plunge...
From Nanex:
DoS Algo's Effect on Trades
While working on identifying and cataloguing the high quote traffic generated by Denial Of Service algo from 01-Nov-2012, we here at Nanex stumbled upon something interesting. Below is an image that shows the trades per second and quotes per second in Bank Of America (BAC) from 9:30-13:45 ET. Each data point represents any second that contained 1000 quotes or more per second in BAC
LOT more,,,,,,,,,,,,,,,,,,,,,,,,,
http://www.zerohedge.com/news/2012-11-04/how-targeted-quote-stuffing-denial-service-attacks-make-stock-trading-impossible
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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