7 Milliseconds
Any bets on how many times this story appears in the local media? The national media? That the I-Team Investigations crew maybe makes some calls on it?
- The United States Federal Reserve announced last week that it would not draw down its $85 billion-a-month bond-buying program (i.e. no “tapering”). The Fed made the announcement at precisely 2:00 p.m. EST, “as measured by the national atomic clock.”
However, just seven milliseconds after the Fed made its announcement, the Chicago exchanges went crazy with huge orders. Seven milliseconds.
The Fed’s decision, as always, was closely guarded before it was announced.
How did Chicago react so quickly?
How indeed. We'd bet even money you never hear a word about this anywhere.
Labels: scandals
posted by SCC at 12:03 AM
17 Comments:
It's called HFT servers (High Frequency Transactions).
Trading is done automatically with servers (not human beings) and you can have a trade every 3-4 microseconds. That's why trading is now for the big firms - individuals could NEVER keep up with HFT trading.
By the time you can execute one trade - these servers have executed 10s of 1000s- if not MORE.
Must be that Infinity High Speed Internet connection.
How indeed. We'd bet even money you never hear a word about this anywhere.
Hear a word? You couldn't stop every business outlet from talking about it last week. They talked ad nauseum about this on the CNBC business channel starting last Tuesday. Also covered extensively all week in the WSJ, Crains, Bloomberg, etc, etc. Old news.
Wednesday discussion on this topic...http://video.cnbc.com/gallery/?video=3000202325&play=1
Do I still get even money?
Read the Wall Street Journal. The full and accurate story was there.
Chicago Exchanges are the sharpest operators in the world. Just part of what makes our city great. Chicago, we salute you.
Actually Chicago and New York reacted at the exact same time meaning they had both prior knowledge to the report and set their programs to trade at the same time.
The mass trading was done during the 1st 7 milliseconds not after it. Happened in New York too.
It's all one big gang. They all know what's up. It's all engineered and the only ones that suffer are the people. BTW - anyone thinking federal reserve is a federal institution is wrong. It is a PRIVATE bank with a fancy name - ripping of the USA sine 1913! Want to learn all about it? Get this great book explaining it all.
My guess is the Slowski's didn't make it. What the Fa!
it has been said often that lessons of 2008 were not learned.
the wiseguys on wall street have not been restrained by sleepy regulaters.
the bond market is the next bubble.
Hey SCC,
Check out Rolling Stone's article on how Wall Street is looting cities' pension funds.
Rolling Stone - Looting the Pension Funds
After reading the article and recently hearing about how the suits from the Civic Committee are doing their best to trash Chicago credit rating, this article sounds like Rahm's blueprint for doing the same here.
I trade futures and live out of chicago since I retired. Actually I made a few dollars on the news. The gold contract started to move up before the news was announced on tv. Looking back at the charts-- the gold contract moved much quicker than the es.
old retired gu¥
Sorry SCC, not a story.
7 milliseconds! WOW!
That's 'almost' faster than the time it takes for the cabdriver behind you to blow his horn when the light changes from red to green.
Hi Silky.
Computer algorithms. The same kind that sent the market crashing when rumors of President Obama's death ran wild on the internet. The algorithms are programmed to search and react to certain words and terms, automatically and within milliseconds selling and buying stocks appropriate to whatever triggered them.
I tried it on my IBM with Windows 3.11 but it didn't work.
I really doubt servers are set to look for key words, process the information, find the stocks that need selling or buying depending on the key words, and do this in 7 milliseconds.
Why?
Because the servers THEY NEED TO INTERACT WITH may not be that fast or be flooded with other trades (and thus slow down.)
No, the word was leaked and the people who run the servers set them to buy or sell at the exact time the official word was announced.
In short, it was all set up and programmed days before the announcement.
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