Is forex market controlled by someone? - page 23
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Manipulated is probably a better word. This is because traders are trapped in bad positions, stop out to take their cash. Also by faking moves in a particular direction, better sell or buy prices can be obtained by professional trading syndicates.
If we start using better words, we are going to end up like politicians.
The fact is that they were rigging libor rates which is a straightforward fraud. And a lot of things that can not be called anything else but fraud. We can call it manipulate, control, market makers investments, or whatever we like. That simply is and will always be a fraud that needs canon meat (us - the small traders) to avoid scamming each others. We are a simple sheep used to be robbed
Why no. Nobody is controlling or is trying to control a market where with even a fraction of % they can get 100s of billions of $ a year? Come on people, where there is such an amount of money there is almost the same amount of thieves
Don't confuse normal trading practises with insider trading / price fixing issues. When traders want to buy positions the price is pushed lower and buying takes place while the price is going down. When there are no more sellers, the trend then reverses trapping those traders who sold- see the (Volume : The Truth of Secret !! ) thread. The opposite is true for selling.
Seem we are talking about different things
I am not talking about stocks and insider trading (this is not a case when a CEO of some company sells information to some broker what is the revenue going to be next month, or what patents are they going to get in a week, and so on, and so on ...). I am talking about forex
Rates rigging (remember Barclasy scandal?), central banks narrowing ranges with constant money printing, and pushing us into bigger and bigger risks to get the same income, forex related data selling (we came to a state where Reuters and Buffer were selling forex related data - and when they decided not to sell data any more Buffer make 46% in just one quarter - Q2 - from what : not selling data?)
As of volumes - that indicator is just a combination of ticks, one simple moving average and comparing close to that sma. Where s the secret?
Please, lets talk about forex and how forex is controlled.
I am talking about Forex. What I said about the market happens every trading day without fail. Everything else in your statement coming under insider trading / bad business practices etc.
I am talking about Forex. What I said about the market happens every trading day without fail. Everything else in your statement coming under insider trading / bad business practices etc.
Being a thief is a "bad practice"? And I even did not mention the HFT thieves
Anyway, happy forex trading. You are going to need all the luck you can get with that kind of information interpretation
all the best
Bafin intensifies Libor probe at Deutsche Bank: Spiegel
German regulators have intensified investigations into Deutsche Bank in an effort to resolve a long-running, industry-wide investigation into possible efforts to manipulate benchmark interest rates, magazine Der Spiegel said on Sunday.
The latest initiative aims to determine when co-Chief Executive Anshu Jain first learned of possible attempts to manipulate benchmark rates such as Libor at Deutsche Bank and in the industry in general, the magazine reported.
Investigators recently discovered that critical electronic records were destroyed in early 2012, including telephone conversations that took place around the time that Lehman Bros. collapsed in 2008, the magazine said.
German regulator Bafin, which has hired auditors Ernst & Young to pursue new lines of query, declined to comment.
Deutsche Bank said it was cooperating with regulators and conducting its own probe into possible manipulation of Libor (the London interbank offered rate), a benchmark against which around $450 trillion of financial products from derivatives to home loans are priced worldwide.
"As per current status of investigations, we can say that no current or former member of the management board had any inappropriate involvement," a spokesman said in an emailed statement.
Investigations into the possible abuse of reference rates such as Libor or foreign exchange fixings have dogged banks since a post-crisis regulatory backlash struck the financial sector.
Deutsche Bank has paid at least 5.6 billion euros ($7.5 billion) in the past two years in fines and settlements and expects to pay around 3 billion euros more this year.
Bafin's queries extend beyond the core, seven-member management board and target managers including the bank's 20-member executive committee, Der Spiegel said.
Bafin said in May it hoped to conclude its Libor investigations in the summer. Bafin and other euro zone supervisors will hand over responsibility for overseeing the area's biggest banks in November to the European Central Bank.
source
Former Microsoft Manager Sentenced for Insider Trading
A former manager at Microsoft Corp, Brian Jorgenson was sentenced on Friday to a prison term of two years for his role in an operation of insider trading that was carried out while he was a manager of corporate finance at the company.
Jorgenson pleaded guilty previously to a charge of securities fraud over his passing along confidential information of Microsoft’s to a day trader named Sean Stokke.
The information handed over included the 2012 plan of the company, to invest with Barnes & Noble Inc.
Anticipating there would be an increase in the Barnes & Noble share price, Stokke, who also pleaded guilty earlier to insider trading, used the information that was nonpublic to purchase Barnes & Noble options. Those options earned him a profit of close to $200,000 when the share price of the bookseller jumped by over 50%.
Microsoft in 2012 invested more than $300 million in Nook Media the B&N controlled unit that handles its electronic reader and digital book business. That investment gave Microsoft a stake of 17.5% in Nook Media.
source
Jorgenson exploited the access he had to confidential information of the company again during 2013 to allow Stokke to put down bets prior to two of the quarterly earnings reports of Microsoft. In those instances, the two pocketed over $400,000 in profit because of their operation of insider trading
The pair was charged by the Securities and Exchange Commission and the U.S. Department of Justice with operating the scheme of insider trading last December.
Stokke was given a sentence of 18 months on July 25.
Jorgenson had asked for a year and one day in prison as well as 500 hours doing community service. However, the judge handed down a sentence that was harsher to serve as an example to the public.
Prosecutors were asking for 2 ½ years for Jorgenson, but the judge handed down 2 years. The prosecutors said he was the instigator of the operation.
Jorgenson, who has four children and no history of any crime thought he would be given a lighter sentence.
Presenting The Quote Stuffing Trading Strategy Of The NY Fed's Favorite Hedge Fund: C
As regular readers are well aware, when it comes to "more than arms length" equity market intervention in New Normal markets, the New York Fed's preferred "intermediary" of choice to, how should one say, boost investor sentiment aka "protect from a plunge", is none other than Chicago HFT powerhouse, Citadel.
Yet one question had remained unanswered: just how does Citadel manipulated stocks?
We now know the answer, and perhaps more importantly, it also links in to the true culprit behind the May 2010 Flash Crash, no not Waddell & Reed, but quote stuffing.
Most importantly, the revelation that for Citadel quote stuffing is not just some byproduct of some "innocuous" HFT strategy, is that none other than the Nasdaq has now stated on the record,that the most leveraged hedge fund (at 9x regulatory to net assets), and the third largest after Bridgewater and Millennium, used quote stuffing as a "trading strategy."
One wonders: did Citadel (with or without the Fed's urging) also have something to do with the infamous and biggest (to date) May 2010 market crash and subsequent surge - and was it merely a test for something else?
We hope to bring readers the answer soon, in the meantime here, courtesy of Nanex, is all you wanted to know about Citadel's quote stuffing strategy:
The Quote Stuffing Trading Strategy
On June 16, 2014, Nasdaq posted a Disciplinary Action against Citadel Securities, LLC (CDRG) which was similar to one posted by FINRA on June 12, 2014 (and we wrote about here). Usually, exchange disciplinary actions are identical to FINRA's except for name changes, however in this case, there was one paragraph in the Nasdaq action missing from FINRA's. And not just any paragraph, but the most stunning revelation about Quote Stuffing to date. Let's read through it:
The paragraph states that Citadel was sending excessive orders (Quote Stuffing) as a trading strategy 3 separate times. If there was a glitch, it would be from from a human mis-configuring a parameter, allowing the Quote Stuffing trading strategy to blast orders at rates much higher than 200 per second. Is placing and cancelling 200 orders per second excessive? This depends on whether they are spread out evenly over the entire second (1 every 5 milliseconds), or if all 200 are sent in one 5 millisecond burst and then silence for the remaining 995 milliseconds. If sent in a burst, the impact on networks and trading systems is significantly higher than if spread out evenly (see Latency on Demand and Direct Feed Slowdown). Furthermore, a burst followed by quiet wouldn't be detected by exchange monitoring software looking at traffic at one second resolution or higher (most internet monitoring software looks at 5 minute averages!). This isn't theoretical, it's real and we have documented many examples, such as this one here.After analyzing Nasdaq's TotalView data (their direct feed) and SIP data, we found a few inconsistencies with Nasdaq's finding. First, Nasdaq claimed Citadel placed these orders at a rate of 8 to 9 per microsecond (millionths of a second). That is wrong, they probably meant per millisecond (thousandths of a second) - you'd think an exchange that catered to HFT would know the difference. The data shows the Citadel Quote Stuffing algo placing and canceling orders at a steady rate of about 17 messages per millisecond, or half that number if we are counting orders: so 8 to 9 orders per millisecond (1 message to add the order, and 1 message to cancel it). Only one order was active in Nasdaq's order book at any given time - it would place an order, then cancel it, before placing a new one and repeating the process.
The other inconsistency is that Nasdaq states Citadel's Quote Stuffing algorithm ran in PENN between 13:32:53.029 and 13:33:00.998, but both direct feed and SIP data shows it ran between 13:32:48.875 and 13:33:04.525. This is clear in the chart below: the red is TotalView activity, the blue is the SIP (which is stacked on top, not behind).
Let's zoom in on one second of time and look at data from both TotalView (Nasdaq's direct feed) and the SIP, when Citadel's Quote Stuffing strategy was running in Penn National Gaming Inc. (symbol PENN).
Each pixel along the x-axis is 1 millisecond (1/1000th) of time. The blue line shows the number of quotes sent by the SIP during each millisecond. The red line shows the number of order messages recorded in TotalView (DF, the direct feed) each millisecond. Lastly, the green line shows the lag between the SIP and the TotalView. According to Reg NMS, there shouldn't be any lags: but there are many. You should know that the lag to the SIP isn't confined to PENN - all other stocks process by the same network/computer will experience the same lag.
What is the benefit of a lag? For one, latency arbitrage is enhanced, especially if the lag is predictable, which it would be for someone running a Quote Stuffing trading strategy. The type of firm that would benefit the most from latency arbitrage would be an internalizer - someone that matched retail stock trades based on the slower SIP, but could buy and sell the same stocks on the faster direct feed. By the way, Citadel's bread and butter is internalizing (matching) retail stock trades. Another benefit is that lags throw off smart order routers, and that can enhance HFT's ability to pick off stale dark pool orders (many of which are priced on the SIP), as well as allow them to get out of the way of a large order (see this example of a trade we documented in detail).
Direct feeds can also be slowed down: see this detailed examination of delays in NYSE's OpenBook caused by Quote Stuffing.
The chart below zooms in on a 200 milliseconds. Note how quotes from the SIP come to a full stop several times, with some lasting up to 16 milliseconds. After the stop, the SIP then sends a burst of these stale quotes to subscribers who have no idea the quotes are old because the SIP replaces the timestamps when they are transmitted (this page has nice animation of how this works)
read more