Monday, December 12, 2016

This is the problem trading pit and Smart Card solve

The SEC continued its crackdown against market-manipulating masterminds today, when it charged two New Jersey-based traders, 37-year-old Joseph Taub, of Clifton, and 21-year-old Elazar Shmalo of Passaic, with manipulating more than 2,000 NYSE and NASDAQ-traded stocks and reaping more than $26 million in profits from their successful trades.The duo is accused by both the SEC and the NJ Attorney's Office of manipulating more than 23,000 trades, buying and selling $10 billion worth of securities and making more than $26 million in illegal profits, usually through “two or more trading accounts that bought and sold the same lightly traded stock on the same day during the same period of time,” U.S. Attorney Paul Fishman said in a statement.In the complaint, the DOJ charges the two traders of engaging in “a scheme to place numerous buy and sell orders for specifically targeted, lightly traded securities in a coordinated fashion that allowed them to manipulate the price to their advantage. Over a period of years, they manipulated $10 billion worth of securities in this way, pocketing $26 million in illicit profits at the expense of other investors. The charges we filed today are part of our continuing effort to hold accountable those who would try to illegally tilt the playing field in their own favor.”“The trading manipulations usually lasted just a few minutes each, during which time the conspirators sometimes controlled at least 80 percent of the volume of a targeted stock and traded in several accounts simultaneously,” Fishman said.
We have this problem because the SEC is not paying attention to congestion issues, mostly caused by the SEC.   The hackers are playing the congestion, ramping up on the trade, but the information on their trades is available too late for others,mainly because the exchanges are not up to speed on how bid/ask compression works.

Why are American technologists so far behind?  Because they take advice from a bunch of idiots in Silicon Valley when they should pay attention to the mathematicians who understand the issue.

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