High-Frequency Trading Allegations Lead To Confrontation On CNBC

By: Wednesday April 2, 2014 9:10 am

After /Sunday’s 60 minutes expose on high-frequency traders “rigging the stock market”, the Global Markets president of BATS William O’Brien, went on CNBC to challenge his accusers directly and rudely.

After O’Brien accused author Michael Lewis and Brad Katsuyama of lying in order to promote a business Katsuyama said “You want to do this? Let’s do this.” What followed was Katsuyama laying out how BATS allows high-frequency traders to “scalp” other market participants by using fast computers to front run trades.

 

A Market of Crooks and Naïfs

By: Sunday December 8, 2013 10:32 am

We need to stop tweaking the efficient market hypothesis and create models that resemble the circus that is the reality-based stock market.

How Japanese and Americans Save Differently

By: Friday May 24, 2013 6:00 pm

In America a dollar today is worth much less than a dollar in 1980. Americans marvel at how much cheaper things used to be in the past, when Coca-Cola and movies only cost five cents.

In Japan the story is quite different. For long periods in the past two decades, nominal prices have in fact declined.

High Frequency Trading Can Be Curtailed Simply With a Transaction Tax

By: Thursday October 18, 2012 9:45 am

The stock market has become a war between algorithm-based robots, a war for speed where the winners trade 10 microseconds faster than the losers. But all sides of this war have armed themselves so well, have reduced the timing of trades so much, that high frequency trading no longer makes much money.

Citigroup’s Pandit Resigns as CEO

By: Tuesday October 16, 2012 8:15 am

Vikram Pandit, the CEO of Citigroup, who presided over some of the worst years in the history of the bank, abruptly stepped down today. He will be replaced by longtime Citi executive Michael Corbat. Here’s Pandit’s statement.

Study: Time to Stop Banks From Risky Trading

By: Thursday October 11, 2012 6:00 am

The IMF has released a new study showing that, in essence, the world would be a much safer place if international banks stopped trading in the financial markets.

SEC Using High Frequency Trading Firm to Monitor High Frequency Trading

By: Monday October 8, 2012 3:32 pm

One of the areas that Sen. Ted Kaufman and his chief of staff Jeff Connaughton tried to focus on during his accidental two-year term in the Senate was high-frequency trading. The 2010 “flash crash” showed the potential dangers of this fast-growing industry. Consider that our financial system places a large emphasis on where super-computers are sited relative to the trading machines.

As Felix Salmon points out, one of the consequences of the melting polar ice sheet is not just that companies want to drill for oil in the Arctic. They want to lay cable through the shorter Arctic route, to increase the speed of information between the US and Asia by a matter of 20-60 milliseconds. And that infinitesimal shaving off the time of a trade matters. It’s the difference between placing a trade too early and placing it too late. It means billions upon billions of dollars. And that’s a huge problem.

Final Pre-Election Jobs Reports

By: Saturday October 6, 2012 1:00 pm

This week has seen the final jobs reports that will be available to make a possibly measurable impact prior to November 6. Wednesday’s report from ADP had 162K new private sector jobs. Yesterday’s (Thursday, October 4) Jobless claims report had a slight increase to 367K new jobless claims and 4 week rolling average of 375K new claims. Finally, today’s (Friday, October 5) Bureau of Labor Statistics report has an increase of 114,000 jobs for September and the jobless rate falling to 7.8%.

Clinton’s Surpluses Were Due to the Stock Bubble

By: Sunday September 9, 2012 5:00 pm

The Democrats’ discussion of the loss of the Clinton budget surpluses is a tale of paradise lost. Unfortunately, it was an illusory paradise that serious people should not concern themselves with. That is why it is disappointing to see Ezra Klein give us more tales of the evaporating budget surplus.

Citi Settles for $590 Million With Shareholders Over Misrepresentations During Financial Crisis

By: Thursday August 30, 2012 1:39 pm

Citigroup has settled a class-action lawsuit with shareholders over how Citi managed subprime securities during the financial crisis, a second-order fraud unconnected to the actual fraud of securitization and knowingly selling the bad securities in the first place.

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