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tv   Money Bots  Al Jazeera  February 9, 2022 4:00am-5:01am AST

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ah, a a hi there, i'm kimberly allen dal home with the top stories on al jazeera, high level talks to avoid conflict in ukraine are continuing the leaders of france, germany and poland have been berlin earlier french president emanuel con, called for com, during a visit to the ukrainian capital keith, how the arm del hamid reports. it was the 1st visit by a french president in 24 years. emanuel mac hall in cave, after holding a 5 hour marathon meeting away with russia's president vladimir putin in moscow. on monday. the little people pushing so many push on law,
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our goal for coming weeks and months is to have a stabilization of the situation and to kickstart through new currency mechanisms, the lasting de escalation in this context. the cool had, in this you have shown the restraint that all parties have shown and word indeed are essential. france also pledge $1300000000.00 to help stabilize the economy. signing deals, to improve some of the infrastructure around the country. but with no sign of de escalation, yet, ukraine continues to prepare for the worst case scenario. ukrainian troops out to hold military drills around the country, starting february 10th. the same day rush and bella rues, are due to start phase 2 of their joint exercises. the ukraine and minet, she will be displaying some of the weapon we received from nato members. is army has grown from 6000 to nearly 850000 combat ready troops. and the country has also upgraded its own military industry. nanda 1st spoke of up
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a few of them. yes, we can cover our needs when it comes to an anti tank weapons for land and mobile unit. we also produce several types of talked go where promot swore. but for now is diplomacy? that is prevailing, even though president zalinski is being cautious that make perhaps a little of the optimism shown by emmanuel michael. but his feet law, yet i don't trust words in general. every politician sincerity appears in their specific steps. in our case, the sincerity is the escalation. i believed it put in has everything to do this, especially as this person is very sincere. as i understand in this way, you're not sure who i don't know an entity in europe who would be able to put strong pressure in russia. the occupation of our country is still not happening. it seems all parties have agreed to continue talking with that that i meet al jazeera, give israel has launched the air strikes and syria. the military says it's in
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response to anti aircraft fall that exploded and israeli territory earlier, the syrian state news said its air defenses intercepted israeli. miss all israeli security forces have killed 3 palestinians in nablus. and the oxford westbank military accused them of involvement and recent attacks of palestinian armed group says the men were members and has threatened to retaliate the corruption trial of israel's former prime minister benjamin netanyahu has been delayed of the allegations that police used pegasus, spyware, and israeli newspaper reported officers hacked the phones of netanyahu's son and his associates. the un involved food program says 13000000 people across one of africa facing severe hunger, kenya, malia if you, your, and eritrea, a suffering from a prolonged drought. 3 rainy seasons have failed in food prices. arising
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concerns also growing about malnutrition and metal gasket. 5 flown on sunday destroyed large areas of farmland. at least 20 people have been killed and 55000 has been displaced. land fires in western columbia have killed at least 14 people. days of heavy rain triggered floods and podium. rescue teams are still searching for survivors. on kong has brought in its toughest restrictions. yet as it battles a record number of coven 19 cases, people will only be able to meet one other person in public. the u. s. a seized more than $3600000000.00 worth of stolen crypto currency. its largest ever financial seizure, a couple in new york has been arrested in charge for trying to lose that money. of the headlines. more news here on al jazeera right after money, bolts season. ah,
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me ah, the 5th of february, 2018 at 3 pm local time. the dow jones plummets as though the stock exchange has been hit by lightning. it loses more than $1500.00 points in a matter of minutes. never before in the history of the index of american stalks law, so much in a single day, a new york is not alone. the collapse spreads like wildfire to frankfort, sidney, tokyo, panic erupt. nobody knows what has caused this disaster. there is no discernible real world economy reason. there are no new economic predictions, no unemployment statistics. the only explanation that is offered sounds strange. apparently the trading computers were too fast. ah,
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how is it possible that a fringe development of automated stock trading yesterday, nomic acceleration of computer systems could almost cause a world wide financial crisis in berlin gear, how chick campaigns for more transparency in the financial sector than the one on the store for grants? 100 for your average of chevy. is this no neat nuts, decent hazardous headless while human be us to live was in music, couldn't and talked to a 100 words. m doesn't go for the other trophies out to a 1000. once he runs across, i left the unit vine, he'd yolande to about a 1000 us official privately. essentially high frequency trading significantly reduces the time that
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a stock is held before being sold. sometimes it's just milliseconds or even microseconds. high frequency trading is the opposite of long term investment, which is what stock market we're actually designed for. access to stocks also became a lot faster. the quality of the investment was no longer the deciding motivation for buying or selling. all that mattered was who could react the fastest high frequency trading is performed exclusively by computers, not people. these computer systems are completely autonomous. essentially, they are warring box money box. high frequency traders place their computers as close as possible to stock exchange computer systems. a protest known as co location proximity and high speed connections are a deciding factor. for example, a pension fund wants to buy 600000 shares at a price of $9.50. their order goes out to various stock exchanges. when the order arrives at the 1st stock exchange,
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a high frequency trading system detected and immediately places its own orders for the same chairs with all the other exchanges faster than the pension fund kat, thanks to its high speed systems, the high frequency trader is able to buy up all the shares at a price of $9.50, then sell them to the pension fund for $9.51. the high frequency trader has earned $6000.00 within a few milliseconds, and with no attached risk. ah, i frequency trade as do not have to be active in the markets permanently. their advantage is most effective when crises, disasters, or political decisions cost strong price fluctuations. essentially, high frequency trade has benefit from crises and a constantly waiting for the next one to occur. in the beginning,
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the intention was to use greater predictability and foster infrastructure to increase the stability of financial markets. in fact, the opposite has occurred. automation has made them more vulnerable. after all, there is no electronic system that cannot be hacked. ah hm. i had a bi, you're treating engine was running in frankfurt remotely, by it was being controlled from london. ah, what happened in this particular case is that an internet related outage caused us to lose control over the engine that was in frankfort. and i remember for a couple hours, she ha,
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trying to validate that the engine itself was, i'm demobilized. ah, it turned out my engine was actually live. i had actually designed feature that said if you break connection with the mother ship, stop trading. but that feature had a parameter and it was off. i had this engine, there was basically a trade in a could a last calculus $39.00 rate. it lost a few $100000.00. but it was, i was a terrifying experience. i'm bo derek is a trader and commerce software developer in stanford,
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connecticut. i'm bodeo played an important role in the development of automated stock trading. his idea of using computer algorithms to process information as efficiently as possible is one of the foundations of modern stock trading. a 2nd prerequisite for success is a high speed data connection. the french businessman steph antique knows all about fast data transfer. his company's mckay brothers and quincy data are based in paris and california and operate the data connection between new york and chicago. the homes of america's most important stock exchanges. stiff antique and i'm bone, egg players in a global battle for the best computer software and the fastest data networks.
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this contest began a long time ago in the casinos of las vegas. at the end of the 1960s, a new generation of scientists recognizes that it is possible to use computers to increase its luck at the tables. pioneers like edward thorpe and blair, how develop algorithms that allow them to count cards when playing black jack and to make predictions doin farmer takes a different approach. in the 1970s, the physicist makes roulette his field of expertise bump, farmer and his team begin to play, or they soon discover that it's possible to predict the cost of the ball. if one knows its current position and speed. and then we embarked on the building computer that will allow
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us to do this. now this was lighting suddenly sex got started. so you have to realize at that point there were no personal computers or anything like that. in pennsylvania's allegheny mountains, stiff antiques company is working on making the fastest data connection between new york and chicago even faster. no is also considered more. i sampler d mouth bother. in phoebe said fi bought our own toilet data center. however, it put me up to on allow, he just kinda had you one moment that had you already load law firm as your e. uh, could the don the senior had your keys all, were ye risque? no. couture. c, horseshoe law is separated. the maneuver and allergy sac. yeah. or can't hide smoky face. it don't say repetitious. can i push and to are you for it? absolutely. more buffy to look on lashana who were in shore. so the gather, national pope depreciate care go risk or new jersey she or mildew ashanti domain
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club. so i was one to fail or counteract model she is he empty, pu, come laska yan, cause the for me now on? do i sorry to, was donna ill told that he was told that is who was this? you don't, i course don't know. look, don't that he will stand to look a sasha. i pad air leaky more. i'd use you into an algorithm is a rule for answering questions. algorithms provide the foundation for farmers bet, said the casino. oh no computer is required to process algorithms quickly. the time, however, these are large, expensive, and slower. this begins to change in the mid 19 seventy's
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and the 6502 microprocessor had just come out same microprocessor that the guys from apple used to build the apple computer 1000000000. thomas team designs a computer around the same process or the initial version of it was under the armpit. there was a pack of double a battery's under the other arm, pit switches in the shoes wires running up and down an antenna around the shoulders. the antenna would transmit the signal to a 2nd person who would then placed the baths from the moment, the croupier since the ball until the ball until the basket closed. there is typically about 10 seconds to pass 10 to 15 seconds on. so we had to be able to take the data for the rotor and of all and get the prediction 4 to 6 seconds ahead of when the vents got closed. so that the better
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had enough time to reach over in place to house. so we had to have the prediction coming pretty fast. a computer we had ran very slow by modern standards. but because it was, you know, carefully coded machine code. we were able to get the answer out. in a matter of a fraction, a 2nd don't pharmacy computer became the stuff of legends. it wasn't just any computer. it was the 1st computer built into closing, while steve jobs and steve wozniak, were creating the original desktop computer doin farmer was building one in a shoop farmer himself becomes an icon for people working in the field of computer base predictions. farmer and his team eventually decide that the winnings at the roulette wheel do not justify the risks they are taking. ah,
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they returned to more serious scientific fields. farmer finds himself at los alamos, where he investigates methods of predicting the weather, among other things. then the world changes, or at least the world of money allocation, financial gas, or cantonsville, harley, a laundry. really one word to describe was happening in that is the doc jones industrial average is almost $200.00 points. it is down by a $191.00 and been out of all right now. for you. 345000000 shares rateable day on wall street. the dow jones industrial average right now down 271.53 point. putting the down below 2000 more now right now in 1975 point, when during the 1987 stock market crash, investors attempt to dump their shares in
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a panic. they brokers eventually begin to ignore the frantically ringing telephones . the authorities decide that more trading should be left to computers, as people simply are not reliable enough. the new york stock exchange remains america's largest, but chicago becomes the center of new financial technologies. the whole trading company is one of the pioneers in the field of big data and market addictions. in the early 1990 is the company is considered a measuring stick by many traders like doin, farmer holl trading companies, found a black hole had originally put his mathematical skills to the test in las vegas where he counted cards at the blackjack tables in the 1970s,
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he is one of the 1st to recognize the potential of automated financial trading. in 1985, he found his own company in chicago, the center of us derivative trading i'm bow deck joins hulls team in september of 1997. quantitative analysts are also in high demand in europe, the best emerged from the universities in paris, mathematician so welcome additions to the market. as our physicists like steph, antique, allie parker sherwood's peter? totally mowbray on bush edition, shall he don't. jason medea measure of the felon? melissa of hasa. it had been purely parker shift shade. gilmore on bush,
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if he handled his really windy shoes. q g, a piece of the crafter, secure. li, metty metal penal shayla. vive don's, you know, of a d is this base the data if he's the catch you lucky shortest if he are make you shall come, does occupy the computer. he said damper she did the clear lately, any type of it, not yet, but the question lego. so unique one is that what she marshall did? good. i bosa me. see, come m under. shall kayla been people. he bow a plan. go to a bunker, a key from the davy on betty. ah. inactivity too much of a trivial looks. al moon sit sit gina is had done that if he's here of her full bassy the keep on out of had a t me t she's a mom jennifer she po process he
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r a monte dees activity to preserve media the of new bell while we were doing the roulette project, our friend rob shaw came over and said, i just found out about this amazing thing with chaos. so we went up to lab and we looked at the simulation on the ala computer and we were just maze because you could see, even though there were deterministic equations with making this random looking set of patterns on the screen. and so we got completely fascinated by that and we on, we created algorithms for finding identifying patterns in nature that are described by chaotic dynamics. i'm doin trauma devotes himself to studying pappy's, the tele prediction is to be made. one of his areas of study is meteorology,
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pharma and his team in los alamos, are able to expand the time frame for precise hurricane predictions from 2 days to 5. this gives emergency services, valuable time to evacuate people in danger. in every time i will talk about this, somebody would say, well, have you play the stock market? and so i kind of got heart saying, no, ah me, while i heard about the efficient market offices, which says that stock market, sorry, inherently unpredictable, was a very popular theory at the time. and i didn't believe so normally i once again left, he left his job at university of illinois. and i left my job. it was alamos, and we gathered with some other younger scientists business guy and started company
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to use computers to protect the stock market. this was in 1991 and called herself critical. mm. ah those that goes with that. a boy. yeah. i think most we've had the reason i'm not for a lease on my lack of a year to homeless. he found his all do not to have on the fund is any get, say taylor court that she wants to still continue to family doctor? no, no, no. these 3rd tech count them in math nor in your feel or to come feel reacted. also, lab rosser, very one hour to day buffy you along on a born you the long on abaz's done. the perry stock exchange is not the only empty shell. even wall street is little more than a movie set these days. this interaction data center is
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located in an anonymous building on the outskirts of vienna, austria. the company has 13 such co location centers throughout europe. more than $100.00 internet service providers. 5 internet exchanges and important cloud services have computer stationed here. as does vienna stock exchange, the exact location is kept secret, and there is no official confirmation of the presence of stock exchange computers. we secure the sky shift mer vegas infection bit saved, is the state and sent on an an impact norton bond from the internet. it's 9 darvin i've gotten so close to you on these are a few more community of interests you're using them and optimize. awesome, awesome. so let's as to here for being with urinals and standard on to me. man. meet the man that one off the mark. eureka shift out frequency. time is of the
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essence. as again, many characters. we've an image to give all the love in steps to see comp nav arkenberg to him millisecond. okay. and does history on the should we figure shapes? marbella, for fun gaming is him, so financed is less than guns for use of it. for this reason, the vienna stock exchange is most important server over which deals are made, isn't located in vienna at all. it is in frankfort in the race to buy or sell. it's important to be as close as possible to the main service of the main stock exchange. proximity is time and time is money. in the 1990 s u. s. trading is divided between the new york stock exchange on wall street with its traditional trading sole. and its traditional companies such as ibm
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and general motors and the electronic stock exchange. nasdaq the european mark. it's actually one electronic 1st and the many of us who were part of that transition from florida electronic markets we kind of were groaned in the european markets 1st. and then we came back to the states. matter of fact, your x is quite interesting to me looking back because it was the 1st exchange were where i found, you know, basically a cheat to exploit. ah, they got a lot of credit and he got a big promotion for finding a cheat on the, on the or exchange to get prices faster than we should of. and i'm now years later when i hit the front page of the wall street journal for my whistle blowing against direct edge, i'm the former colleague from hall. i contacted me by email and said,
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hey, what you turned on a direct edges. very similar to what we were doing on your fax and i, i've been whistleblower for a year and had not really acknowledged that i was guilty of the same type of thing that i had turned in. you know, i just had in acquainted the 2 and have it made me realize how difficult it is for people to really see what they're doing in our industry. when we founded protection on me, we didn't know anything about financial markets. our method was to look for patterns in the data and, and when we found those patterns, then we would design a training system that would make that's based on the patterns we learned some lessons from a let. one lesson was that you've got that big. the stock
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market also to make a good model. you don't have to create very well if you're right 55 percent of the time. if you make enough doubts, then you can make pretty good profit. and unlike roulette, where if you start, when they can just throw you out or threaten to break your kneecaps, ah, the stock market, they don't kick you out for winning. so we actually took us about 5 years before we really found something that genuinely worked in a consistent way. once we did that, it worked very well. and so production company traded subsequently for about 25 years. we ended up selling it to you via us in 2006 roderick or ah diet, define who we are. but who are we?
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if we don't know what we're eating in a disturbing investigation into globalized food fraud, people and power reveals long hidden scandalous practices. the def, infiltrated international wholesale markets, and supermarket chains and asks, what's really on our plates. food in glorious food pond to on out just sierra with britain's beloved curry houses are in crisis to india. don is shut down every week
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. use a bricks, it financial thrive, and the pride in $1.00 0, $1.00 east investigate on out you 0. lou. given alan doha. a bit of noise on al jazeera, high level talks to avoid conflict in ukraine all. continuing the leaders of france, germany and poland, have met in berlin. earlier french president emanuel con, called for come during a visit to the ukrainian capital to have to make the premier the discussions i had with prison, couldn't work to look at ways to lower the instability and insecurity in the region . this will take time, in particular lowering attention related to military buildup. we have to find ways of bringing viewpoints together and lowering the tension. obviously the
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geopolitical order that was built at the end of world war 2. we need to address that. i think our communications over the past hours have helped us to address this old position, young girl and how to change the israel has launched to air strikes in syria. the military says it's in response to anti aircraft fire that exploded in his railey territory earlier. syrians, date you said it's air defenses intercepted israeli missiles is where the security forces have killed 3 palestinians in nablus in the ultimate westbank. the military accused them of involvement in recent attacks on soldiers, a palestinian armed groups. his men belonged to its organization and had, has threatened rather to retaliate the u. n's world food program says 13000000 people across the want of africa facing severe hunger, kenya, somalia, ethiopia and eritrea. a suffering from a prolonged drought. 3 rainy seasons have failed,
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and food prices arising. officials say urgent, humanitarian action is needed in the coming months. concerns are also growing about malnutrition and madagascar. sunday cyclone devastated large areas of farm land. at least 20 people have been killed and 55000 have been displaced. landslides and western columbia have killed at least 14 people. days of heavy rain target floods in peria. rescue teens are still searching for survivors. hong kong is brought in its toughest restrictions, yet as it battles a record number of covered 19 cases, people will only be able to meet one other person in public. the u. s. has seized more than $3600000000.00 worth of stolen crypto currency, its largest over financial seizure. a couple in new york have been arrested by let's take you back now to money bots. season new speed is not only essential
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when operating a stock exchange. investors and traders also have to react quickly. those who are 1st to recognize price differences between stock exchanges can use this advantage to make a lot of money. at the turn of the millennium, the large banks realize that they are falling behind the competition. in 1999, goldman sachs buys the whole trading company for half a $1000000000.00. hall was supposed to be become like the backbone of, of gorman and really dinner in it really was a very, very different culture goldman than, than i haul him. and many of my people i related to and didn't feel at home dissatisfied with the investment banks, business practices, a number of former whole trading company employees leave. goldman sachs in 2003 beaudet joins u. b. s, which is planning to open
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a new trading floor in stanford. he is tasked with creating the infrastructure from the ground up. i remember the 1st time i heard, but i frequency traders. i the was an elevator with her person who's very, very senior in the business now. and he was complaining about how they would interfere with, you know, the, the trading profits of the desk he was running. but that they didn't make that much money. and i was, that was so interesting as that the strategy class made a huge amount of volume, but not much money at all. and we were like, why would people do that? you know, why would you do all that work? and i make such a small profit. ah, many was surprised by the rise of high frequency trading de financial journalist jennifer niel kept a close eye on developments from the very beginning of
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national her. and he virtually all then tricity, nausea to live, focus and they media dis, you heard his best, he might be, i'm gonna get you set for the higher education market companion of kylie doors. her doesn't require a federal assist with. she knows perhaps jen. hi, lisa. if it we got it from i see that he gave his get was them nice. yeah. and molested. if all the help that live on our thought alpha by looks that more and on the music yet, is it mixed up? it gets cookie. and the hosting us yet? yeah. again. yeah. he sophomore from may have been it hasn't been a lot as go since it's like the laser dollar volatility, so mushy. a asthma, mo, let our peak with well, let's get this all day after the manion her if minimize that he felt that his affair fanatic else while the explosion of high frequency trading in the early 2 thousands continues. heim bo deck is developing new trading strategies for his
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employer, u. b. s. he calls it sighs game. his algorithm follows a simple logic. because large orders are given preferential treatment by the stock market. the money bought dynamically increases its order to remain at the forefront and push out competitors. however, there is a catch. he has to ensure that the artificially inflated order never actually takes place. if you put huge orders out there of that size and they all trade, you will go pretty much instantaneously. belly up. ok, i won't go into details, but it happened. it's a game of chicken in a way. we had to write algorithms that said, if you traded 30000 contracts, you don't want to trade those 30000 contracts. so try to dump them immediately on another exchange where some other market makers still getting 30000
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x. so we, we created all these, this algorithm in this kind of, we're in terms of getting the largest, what we call participation rate. it turned into this horrible game of chicken and hot potato, where you quoted more than you wanted. and then you really should enter in any responsible manner. and then if you actually got hit, which happened, you needed to dump it on other people before i before they realised that the potato was coming, it was as stupid as you can get. it was a, it was a stupid ah, so the algorithm that i designed was powerful enough that everybody else had to match it. and that actually brought down the market system, the market data system of the us option market to the brink of like collapse
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basically. and was so cool for me. i was like it just like, literally just love this i. i could see how many months it took for another firm to realize what i was doing and tried to intrude the same algorithm. and it took 3 years for 7 firms to figure it out. i'm bo deck size game turns him into a financial rockstar. however, he knows that he can't play the game forever. it is time to strike out on his own. i walked out with the team. and i set up train machines, susan. ah, 2007. it was her. designed to be, you know, a ferrari from an independent for ari to me or for me or was really a dream as to be independent. but then realize it was going to turn into an odyssey
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boat ag leaves u b. s. at a time when the stock market in the usa and europe are changing dramatically. part of this is due to the high frequency traders. the large investment funds are angered by the fact that the small flexible high speed traders are constantly snapping at the heels. the banks begin to set up internal exchanges, which allow trades to take place in secrecy. more than 40 of the so called dark pools are established as alternatives to the 13 regular stock exchanges in the usa alone. the movement of investors into the dark pools forces the stock market to cater to the high frequency traders. and they soon make up the majority of traits. some estimates put the number as high as 70 percent before long. the banks themselves cannot resist the temptation of the high
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frequency money and open up the dark pools to high frequency trading. speed is all important. le ledger or sap hoshevely because the, you know, when you're georgie, ah, or v all. do you me cause going or should left desert eddie meal we learn to read before the financial crisis. we launched beasley into it. we traded through it, we scaled out. all of our algorithms and memberships, i'm major changes pretty much hit when i called full footprint. and we went to a half percent us market share pretty much overnight and i things were going very well until may 2009. when things mysteriously stopped up working
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we built the system, it would basically measure that the trades that we intended to do were in fact profitable. and that were the trades that the machine should be doing over the period of 2009. and i started seeing and changes the soc trading that we did change quite a bit over that period of time. and what happened was some i, you know, kind of bought into them. what i think of now is a myth where people say, or that that exchanges toxic. and in, and, you know, without, you know, that's just kind of a blanket term. greg, you know, i'm getting screwed on the exchange. that's what int toxic me. so what i, what was happening is i would keep redirecting, are trading towards of a changes that were less toxic. ah,
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and then there were none. so over the last exchange to toxic was, was direct edge in i may of 2009. i was out of the, it was when you're away from the office and i for week and i came back and there was this traumatic change that was so severe that it basically took the business from modestly profitable to flat. in order to confront the problem, i'm bo deck immediately buys foster connections and price fate. he optimize his, his coat, but the problems increase. he watches power, leslie, as the blood drains out of his company, facing bankruptcy. hind though deck and count as a direct edge salesman at a party. he just told me any outlined 3 major abuses he'd i got
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interested and i remember take out a napkin arrow where we found the pan or something but i, i wish i had this napkin. so i'm, you know, i'm like, what this is, do you mean it works like this? and he explained to me these very, very sophisticated abuses. and um, he said to me that they built all the stuff to attract high frequency traders. but they hadn't done an good enough job. so now they were going to make new high frequency traders. i was invited in the club to become a new abuser. i it was 20 minutes of work to fix these problems. but i have been chasing for half a year, and this guy could have just told me half a year ago. and the, you know, if he had told me much earlier, i probably wouldn't have crossed my mind how wrong it was. but i was so
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angry, it was very clear to me that you either used the cheats or you were a victim. it was designed, there was no middle ground. you don't, you could not be innocent. once, bo, deck discovers the reason for his company's failure. he embarks on a last ditch attempt to save it. however, he is too late. trading machines and his bankruptcy during the turbulence of 201-2011. for the 1st time, pine bow, dank, is forced to confront the realities of high frequency trading. do you think the high frequency trading industry wants to say? well, we're using a, you know, undocumented special order types and an obscure abs exemption and regulation, and m and m. s. to get to the top of the queue. no, they're gonna tell you they're faster than you. and that was, you know, that's the false flag. let's say or no, no, the right term is better. you know,
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the red herring speed is ah airy, a red herring for the for, for a lot of tricks that my industry has developed to get ahead of other peoples. the activities of the high frequency traders remain hidden from view for a long time in 2010, something happens that suddenly lifts the veil. at 232 p. m. on the 6th of may, 2010, the u. s. financial planning company waddell and reed places a huge buying order for forward contracts valued at $4100000000.00 using an automated execution algorithm. it is a huge order and extremely promising for high frequency traders. the money bought immediately begin to buy and sell at lightning speeds and without letting up share prices immediately begin to collapse. approximately 3500000 shares are affected and
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more than 200 companies lose their entire share value in the matter of minutes. nobody knows what is happening. 13 minutes later, the chicago mercantile exchange is forced to stop trading. so much liquidity has been sucked out of the market. that it's in danger of total collapse. after a break in trading of 5 seconds, the market comes down again. the cause of the events of may 2010 is never fully resolved. the largest flash crash to date happens on the 5th of february, 2018. its impact is felt around the globe and isis besides a misconception. ah is gifts i'm fed after thought fish caught? snuffed. isn't flesh crushed quite often. i'm with the blower. the watermelon won't dare. hadn't bank money for the thorny for give off that because after would have with money will yet empties and flesh crash? have i so sure doin farmers journey from the
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casinos to los alamos, known to wall street, eventually takes him, talks it. but he now studies stability in complex systems like the financial markets. i think part of what happens in flash crashes though we haven't gotten the bottom flash crashes as well as we should. there are algorithms running and they're just reflexively doing something and they go on right, right on doing it. even though it would be better to stop because that's what their program to do, and they don't have time to think about it any more than running a trading system that literally cares about microseconds. that means you have to write code that is extremely spare. if you're a signal, it's your machine, your machine should at most run a few lines of code and then it has to make
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a trade. you have to do everything super quick. you can't think about it pretty much. when i say you, i mean the machine kept, think about it pretty much i do think we have to worry that his market sco faster and faster. we're opening up the possibility for an instability as a result of the collective interaction of high frequency traders with other parts of the market. and we're doing that for no, no useful purpose. it'd be one thing if we were taking these risks because it came as something that was valuable doesn't gives anything valuable. just makes a few people rich. and the rich in a crazy way. they get rich by, you know, co locating servers next to the stock of change and writing algorithms that trade on that instantaneous glitches of the other orders hitting the market. critics of high frequency trading has spent years in brussels, trying to achieve he,
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you wide regulation. the privatization of markets encouraged by the e used 2004 method. one directive results in stock exchanges having to look for new clients. a similar regulations did in the usa as a result, high frequency trading gains and increasing foothold in europe's markets. regulations pertaining to high frequency trading that were passed by the e u parliament or overturned that the last possible moment by the finance ministers in the council of the european union. but we should king or so i know before they are like will you financed milk to vinegar? yeah, of where to right wasn't fear. it's where thousands even done in kafka tweet and had to sure, well i know like when you gave him the guns with a keys of buying a title, hatamio domino stock will decide. huffman lists my 2002. so if and she, that's what happens, what's, what else invites him? do you think, would you want to finance knocked her so lately with you and to annoy traditional resumes for that scene?
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i had cause honest f o frequence 100 on the one. if you divide as the yes them, if it come up would calm the current the e, you, parliament agrees on a holding period of no point 5 seconds and a cancellation fee designed to restrict high speed trading this is done above the sex was considered jointly should kleckley shy thought to the with the wish gain custody wasn't, it wasn't finance, but sonata london looks on bush barrett, the oil police regional qualifying for treating as it is in finance. what it is we're doing and then not happens. we're not in class or got you bodies, you warmed him with some name. well, not really. how much do you for twitter, the sofa. flick fence, hundreds viet gate and he's like, well, you know, just for the supply and see how does this mine have often implement the isn't i in
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front of them? so got them sitting gilliland on track and transition on the enticing their lobbyist move. this was the credit hondo smith had financed marks legal and plan a plan on democrats. if you could slender tracking, click on the electron. now did you want me to spend also has i think a tool that is often sufficient hintock one process. yet on the saturday to refute a god, it isn't part of the old i'm if it's blocked out in 2012 the same year that the you start working on the method to directive i'm bow deck becomes a whistleblower in the usa. he has met with powerful opposition and the bankruptcy of his company affects him deeply. to me it's not about you know, the possessions,
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ray and the sad assembles to me 1st i rejected them. but then i realize at some point that you literally get paid in that you get more opportunity. you get bigger bonuses if you want a boat, right? be tune your compensation, what they expect your demands are. that's how this business works. it's very, very difficult to play the wall street game and be modest. you are not rewarded for modesty. and i will say after a long period in the business, it did start to corrupt me. and i, the whistle buying was, was an amazing experience, was an think i have been corrupted by the business. and i will tell you why the 1st time i realized that i was was when i had to mow my own want, i live in an air behead where people don't mother alliance. so if you go it out
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while you're on line, it's noticed. and i'm, i will say that i'm shedding back was a liberating but it took a lot longer than i thought it's disturbing how much those symbols of status and wealth become im, essential to people feeling southworth mm hm. most of the retaliation was done through the industry quietly. i and it, you know, it was the kind of a strange mix in that. um the people who were
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at least supportive were the were the victims. it was completely confusing. i thought that what i did was providing information that would balance things and kind of repair the industry, but the victims were basically a embarrass. white investment bank once we had met has been routing orders that have been abused for like 5 years by exchanges. high frequency traders what pension fund wants to admit that. right, so i, i didn't get the love from, from that side of the fence, but was very strange. as i got a lot of attention from the high frequency traders, especially a high frequency training executives who kept trying to reach me back i
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will say that the process made me respect the bad guys way more than the rest of the industry. because they were actually right about the risks they were right about the regulatory response. they pushed things to a level where they could manage it and they didn't go beyond it. there was one, a president of a large high frequency trading firm that had multiple percent market share, 4 percent market share. and i, he told me says, even if you tell everybody what we're doing, the buy site is so lazy. they won't read anything. they won't understand anything, they just won't do the work. you could just put it all out in a map and nothing will change. and i said, oh mister, we'll see about that. so a year later, i'm at a conference where i debated him and after the congress, i said, you're totally right by push a peer. anyway,
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worse over everyone's head. i was like, there there is i, i think over 500 pages in the federal registrar of changes and dom documentation on features of exchanges. its entire purpose was to level the playing field. and i think the only people who really read it rely, brings the traitors. no kidding, or trickle safety of more. a some boys do own play. small. de leon thought i mesheena in michaud mila. cuz she to go la machine, a book, computer net good on google presented coloma la machine that the of agular kill sheet. so when i got into this business, i thought the whole point was to replace the old boys club to get rid of it. and i, what i learned after 20 years is what we ended up doing. that we automated the old
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boys club. it's alive. it's driving. it's in the elbows. ah teach it so man is ruling with a little i infest unless silence from his allies is deafening. us was perfectly happy to trade off to marcy for security. why a weston lead as turning a blind eye when even the citizens have fallen victim to his repression, executions, torture censorship is not acceptable. and you won't hear such strong words from, let's say berlin or paris or london,
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a man in cairo on al jazeera. let's go with her headlines for the americas. hello, everyone. beginning in south america, we've got our storms bubbling up across the andes, the amazon basin, and out toward the south atlantic. we go into that southeast corner of brazil. finally, some good news, a bit of a breather for a flood stricken sal paulo. it is still a few showers around with a high of 20 degrees for you, central america, a lot of disturbed whether to be found here, outbreaks of rain across the yucatan through cuba, and also the palm as with a system draped down from the u. s. and rain to be expected across hispaniola. now we go into the u. s. gulf states in florida that rain pushes away but still keeping the risk for florida and the florida keys on wednesday. so we saw rain and snow for the canadian maritime that's now pushed into newfoundland. we'll see snow here. we'll see rain, but winds will be a factor as well. augustine to about 85 kilometers per hour,
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westbound. we go still warm pocket of air over the canadian prairies, the northern plains were into the double digits for billings with a hive, 12 degrees and a stellar's stretch of weather. although an excessive heat watch him play for los angeles at $31.00 degrees and we're gonna lock your temperature there for the next few days. 31 on saturday with plenty of sun. that's it. see soon. ah join the debate. they erased, out of like, people from the american and global story was very powerful on an online ad your voice. the comment section is whitehead joining our conversation we had on protected when everyone is protected. it is not by being nationalistic about those . you just look at it in a very different way, said that perspective med and mid meeting each other and they don't have any pollution. let me get it clear for you. this screen on al jazeera,
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unprompted undone, interrupted discussions from our london broadcast center. oh, now to sierra ah, a priority is to prevent war in europe, france, germany, and poland. discuss ways to deescalate russia. ukraine. tensions. ah, mother, i'm give adele. this is elena. they're alive from dull hop. also coming up. that coin bossed a husband and wife stand accused of trying to launch at $3600000000.00 worth of stolen crystal currency. israel's spyware scandal grows the corruption trial of former israeli.


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