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View Diary: Overnight News Digest 09/13/2013 (26 comments)

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  •  2 seconds, 1 hour, 16 banks (2+ / 0-)
    Recommended by:
    side pocket, JML9999

    http://www.truth-out.org/...

    Thomson Reuters partnered with the University of Michigan, which is where I spent seven years studying and got two of my degrees. And the University of Michigan has been famous for 50 years for its research in a particular area, and this particular subset is a survey of business confidence.

    And this survey of business confidence is used all over the world as one of the leading indicators of what's going to happen economically. So places like the Federal Reserve, in deciding how to move interest rates and such, look very heavily at this Michigan report.

    And what we know that Michigan agreed to do in its contracts with Thomson Reuters was to give certain clients who paid extra money a two-second advantage in how soon they would get that information.

    Now, that might not sound like much, but these are for folks who are engaged in what is known as hypervelocity trading or hyperfrequency trading. So they actually trade in under a millisecond, under a thousandth of a second. So this is like two years' worth of, you know, advanced information in terms of how fast these guys operate. That's the part we know.

    What Matt Taibbi's story reveals is that other people have been studying trades just before that two seconds kicks in. And what they find is an extraordinary volume of trading just before that two-second advantage would kick in.

    And that means one of two things is happening. One could be that somebody is leaking the number from the University of Michigan or from Thomson Reuters to somebody who is using that information to out front run the front runners. And the second thing that could be happening--and this is the one that the article says they believe is happening--is that there is a group of 16 banks that are even more--you know some pigs are more equal than others. Well, these are the hogs that are even more unequal. And they get the information potentially as much as an hour before.

    And the reason they would wait is, of course, things might change, so that they would wait just before the broader group of front runners who's about to operate, and they can go in and make a killing there.

    It seems to be more weapons research than medical research. ~ Dr. John Hall, author 'A New Breed - Satellite Terrorism In America'

    by anyname on Sat Sep 14, 2013 at 01:22:07 AM PDT

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