[Bucco]

I just wonder how CBS, or any network, decides what book they want to push on various "news" shows

[ivanhoe]

Originally Posted by waynet

if a certain select few get information before the rest of us and use it to make themselves wealth that they may not have gotten of course the system is fixed.

...actually that's the definition of "insider trading" and it is against the law

[JourneyOfLife]

Originally Posted by Bucco

I just wonder how CBS, or any network, decides what book they want to push on various "news" shows

I don't think they are pushing a book.

Some people, serious people, have made allegations of a serious problem with financial markets on the heels of the worst global financial crisis mush of the world has experienced since the great depression.

If it is not news, I don't know what would qualify as news.

Besides... The FBI and SEC are investigating HFT.

Bloomberg:

Federal agents are making an unusual public plea for the financial industry to bare its secrets.

The Federal Bureau of Investigation has openly solicited traders and stock-exchange workers to blow the whistle on possible front-running and manipulation via high-speed computers.

FBI Seeks Help From High-Frequency Traders to Find Abuses - Bloomberg

[PennBF]

Being able to gain knowledge through public sources does not, in my opinion and by default the SEC "insider trading". I am sure the SEC has more than studied these processes and since they have not charged the users as in violation of Trading Laws they are currently legal. I personally believe the 60 Minute piece was smoke and just used to attrack viewers. I have no "dog in the hunt" but do have some experience on the market and trading and just expressing my opinion. I would just add that I am positive there have been a large number of Attorney's who have examined the practices and are feeding the SEC all sorts of information and justifications in support of the Clients using these systems to byb/sell.

[JourneyOfLife]

Originally Posted by PennBF

Being able to gain knowledge through public sources does not, in my opinion and by default the SEC "insider trading". I am sure the SEC has more than studied these processes and since they have not charged the users as in violation of Trading Laws they are currently legal. I personally believe the 60 Minute piece was smoke and just used to attrack viewers. I have no "dog in the hunt" but do have some experience on the market and trading and just expressing my opinion. I would just add that I am positive there have been a large number of Attorney's who have examined the practices and are feeding the SEC all sorts of information and justifications in support of the Clients using these systems to byb/sell.

Noooooo... it is not public information... not in the way you are describing it and probably thinking about it!

Rather than try to describe it in a post and not do a good job of it... you should read about it.

But it could be the unintended cosequences of technology speed increasing and placement of certain technology that enables "certain" HFTs to use the data they "buy", to front-run trades. It may be one of those things that was discovered, first started small, and then became common place.

But that data that is made available (apparently for a fee) appears to be part of the controversy.

It is complicated. Put it like this.... technology has changed, the rules have changed and some small group of those entities labeled as HFTs (not all of them) appear to be exploiting the market. Other market participants believe to to be unfair.

[Bucco]

Originally Posted by JourneyOfLife

I don't think they are pushing a book.

Some people, serious people, have made allegations of a serious problem with financial markets on the heels of the worst global financial crisis mush of the world has experienced since the great depression.

If it is not news, I don't know what would qualify as news.

Besides... The FBI and SEC are investigating HFT.



FBI Seeks Help From High-Frequency Traders to Find Abuses - Bloomberg

Oh my comments were not to defend or criticize anyone. I simply see so many "expose" books coming out...many of which over time become news worthy and wondered how the networks pick which book to push because, whether right or wrong, the writers viewpoint was the ONLY viewpoint given on that telecast.

I learned more from listening to BOTH SIDES yesterday on CNBC....both sides well represented and well articulated.

[PennBF]

I am very familiar with the methodology and systems that have and are being used for Trading. As long as the Trader is not involved in receiving business knowledge from an employee or executive it would be hard to prove he/her are in fact doing "inside trading". If the information is gained by very leading state of the art accumulation of intelligence no problem. A comment was made that if some gained information before someone else then that is insider trading? Actually, the objective of Trading is to get information before the other guy (legally) and use it to execute trades. In a trading room you would see terminals with real time market feeds, latest CNN business News, latest WSJ business news, Current key financial date from Corp Reports, 10K's, etc etc. Each room wants their input to be faster than the other guy. Where in the past this use to be feeds from different sources and now they are, in some cases the results of preset financial data, through statistical models, etc.etc. on nano fast computers. (One nano second is like one second over 33 years). Hundreds if not thousands of Attorneys are evaluating these process's and making sure they don't violate the SEC Rules. I would guess if they did a lot of Executives would be in Court as we speak. Unfortunately becasue of time it is not possible to provide very deep details and therefore some support comments are not included or very summarized and that leaves the comments open to being exposed to challenges.

[JourneyOfLife]

Here is a inteview with Michael Lewis about his book and the issues with Jon Stewart. It is broken up into 3 5min videos... with a simple explanation of the problem.

At the bottom of the page is a link to the CNBC debate between Lewis, Katsuyama and William O’Brien, president of BATs Global Market.

Watch Michael Lewis Explain 'Flash Boys' with Jon Stewart on 'The Daily Show,' CNBC and '60 Minutes' - Speakeasy - WSJ

Here is a link to an interview with William O’Brien, president of BATs Global Market.

In essence O'Brien attempts to make the case that they HFT are just market makers and that new technology is being vilified.

It’s a shameful vilification of the entire industry, says BATs O’Brien on Lewis’ HFTs allegations

Here is an interview with the NY Attorney General about it.

Why New York AG wants curbs on high-frequency traders - MarketWatch