UK 'flash crash trader'
Discussion
CubanPete said:
Good on him.
If he can manipulate the entire American market from a bedroom in his mum's house then he deserves a few quid in my opinion.
The big boys and system supervisors are just upset they've been outwitted by a (foreign) minnow.
That's why I don't understand this case.If he can manipulate the entire American market from a bedroom in his mum's house then he deserves a few quid in my opinion.
The big boys and system supervisors are just upset they've been outwitted by a (foreign) minnow.
If a guy can do this from his bedroom what can the likes of Russia and China do?
Yes I know that sounds a bit "Jack Ryan" but you take the point.
Love the bit that he still lived with his mum so he didn't have to admit to having any dosh. Tight git.
Its stashed in the Caribbean apparently, wonder if he has, or needs to declare the income.[url]
a bit of a fibber, who treats the regulators for fools
|http://thumbsnap.com/RcCQA1f0[/url]
Its stashed in the Caribbean apparently, wonder if he has, or needs to declare the income.[url]
a bit of a fibber, who treats the regulators for fools
|http://thumbsnap.com/RcCQA1f0[/url]Edited by NicD on Thursday 23 April 21:16
Du1point8 said:
I would be thinking this too... Even if he was using TCP or raw packet messaging, the latency for going across the pond would be in the region of 0.5 seconds.
He could use UDP but then there are issues with errors in the messaging, but still that doesnt go that fast that he can manipulate the market.
I know of a couple of experimental data transfer protocols, but the chance of him using one is zip.
Something is a little fishy.
(You're off by a factor. RTD NY to London is approaching low 60ms (0.064s))He could use UDP but then there are issues with errors in the messaging, but still that doesnt go that fast that he can manipulate the market.
I know of a couple of experimental data transfer protocols, but the chance of him using one is zip.
Something is a little fishy.
CME has ways of keeping a relatively even playing field regards colocation within its DC.
Regardless of protocols, you are still limited by the physics of the medium used to transport that protocol.
Agree something sounds fishy...
It's all about proximity to Slough according to the Daily Mail or wherever they have picked up their story from 
http://www.dailymail.co.uk/news/article-3053201/Ro...
http://www.dailymail.co.uk/news/article-3053201/Ro...
hidetheelephants said:
fblm said:
hidetheelephants said:
What net benefit do we get from these edjits and their HFT nonsense?
Almost choice bid offer spreads, practically free brokerage and effectively instant execution.However all this business about front running trades etc. isn't to most participants advantage.
hidetheelephants said:
fblm said:
hidetheelephants said:
What net benefit do we get from these edjits and their HFT nonsense?
Almost choice bid offer spreads, practically free brokerage and effectively instant execution.
fido said:
I just find it odd that he still lives with his parents despite apparently sitting on millions. Wonder if they are really pulling the strings, or still have a huge influence on him?
Might be because he's Asian and/or only son? (IME a large number of Asian parents tend to live with one of the kids)Although he could have bought a bigger house
fblm said:
You've lost me. Are you saying the negatives outweigh the benefits listed.
Yes. The vapid pursuit of this financial castle built on sand sucks capital from things that actually create value, i.e. every other sector of the economy. The tail is wagging the dog in a way that is unbalanced if not positively unhealthy.kev1974 said:
It's all about proximity to Slough according to the Daily Mail or wherever they have picked up their story from
http://www.dailymail.co.uk/news/article-3053201/Ro...
There is a co-location site in Slough: http://www.equinix.co.uk/locations/united-kingdom-...http://www.dailymail.co.uk/news/article-3053201/Ro...
BUT co-location means that the big boys will have their servers and auto-trading systems actually there to reduce latency to an absolute minimum. So it's hard to see how he would gain an advantage in hounslow.
If you're a succesful trader then I guess it's in your interests to confuse competitors with as much disinformation as you can and this has the feel of jut that kind of deception.
hidetheelephants said:
fblm said:
You've lost me. Are you saying the negatives outweigh the benefits listed.
Yes. The vapid pursuit of this financial castle built on sand sucks capital from things that actually create value, i.e. every other sector of the economy. The tail is wagging the dog in a way that is unbalanced if not positively unhealthy.So there's an artificial and virtual money system where people make more of this virtual money by manipulating things on their computer screens, this guy finds a slightly quicker way of manipulating the digits and they take exception to this and arrest him and put him on trial?
It's a crazy world.
It's a crazy world.
Driller said:
So there's an artificial and virtual money system where people make more of this virtual money by manipulating things on their computer screens, this guy finds a slightly quicker way of manipulating the digits and they take exception to this and arrest him and put him on trial?
It's a crazy world.
that's actually not far off....It's a crazy world.
Scuffers said:
Driller said:
So there's an artificial and virtual money system where people make more of this virtual money by manipulating things on their computer screens, this guy finds a slightly quicker way of manipulating the digits and they take exception to this and arrest him and put him on trial?
It's a crazy world.
that's actually not far off....It's a crazy world.
The trades were fraudulently submitted (as the Exchange has rules) and that is why he has been charged.
In his defence, it seems others do the same.
He even got technical assistance from his clearer on how to implement an order type, that cancels-if-close, i.e. if you are on one side of the orderbook and the other side gets within a threshold, it pulls the order. So effectively, putting in trades that are engineered never to trade, creating a false market.
No doubt they'll get in trouble too.
No doubt they'll get in trouble too.
Edited by ReallyReallyGood on Sunday 26th April 09:23
ReallyReallyGood said:
He even got technical assistance from his clearer on how to implement an order type, that cancels-if-close, i.e. if you are on one side of the orderbook and the other side gets within a threshold, it pulls the order. So effectively, putting in trades that are engineered never to trade, creating a false market.
No doubt they'll get in trouble too.
I love his BS to the FCA - 'point and click', hahaNo doubt they'll get in trouble too.
Edited by ReallyReallyGood on Sunday 26th April 09:23
NicD said:
Scuffers said:
Driller said:
So there's an artificial and virtual money system where people make more of this virtual money by manipulating things on their computer screens, this guy finds a slightly quicker way of manipulating the digits and they take exception to this and arrest him and put him on trial?
It's a crazy world.
that's actually not far off....It's a crazy world.
The trades were fraudulently submitted (as the Exchange has rules) and that is why he has been charged.
In his defence, it seems others do the same.
yes, it may well be against the rules, but consider who writes said rules and just how much trading is done that's 'questionable'
once you create a 'virtual' market, this kind of thing will always be going on, there is simply so much algo trading now, it's inevitable that you will get sudden violent flash-crashes etc.
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