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tv   Money Bots  Al Jazeera  May 24, 2021 11:00pm-12:01am +03

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taken from their homes and executed under pressure venezuela's defense minister by the me to pay said the forces were obliged to defend that country from irregular groups that added the human rights needed to be respected. and that the events that the border would be investigated. ah, no, i'm not tainer. and under the headlines for you and leaders across europe are accusing better roots of hijacking. and piracy of the forced landing of a passenger jet that are calling for tough sanctions. after banners used a fight a jet to ground the plane in minsk before resting by the russian journalist room and purchase savage who was on board video purchase savage in detention has been published on social media in the clip. he says he has no health problems. curia of the forced landing and the rest is expected to dominate and you lead is so much in
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brussels. several countries of called for the suspension of all flights tune from better ruse. along with a condemnation that demands for the release of the journalist and was pulled off the plane and arrested. and there will be a very strong focus on the utterly in exceptional hijacking of a ryan their flight by, by level authorities. and there will be a very strong answer because it is a range of behavior, intuition controls. we shouldn't have to understand that this will have to be a consequence. russia says the reaction from the west has been shocking that the she was there will come in 30. we are in the favor of assessing the situation, not in a rush, not in a hurry, but on the basis of all available information more over the representative of the foreign ministry of beller estrace, the readiness of the bella, russian authorities to act in this matter, transparently follow all international rules and if necessary to ensure the
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reception of international experts. i think this is an absolutely reasonable approach. and now a political crisis is breaking in molly, the military has arrested the president, prime minister and defense, mister. they believe to have been taken to a military camp in kathy of war. mister nicholas huck, who's on the phone from deco and neighboring center. go tell us more detail about what's going on there. and molly, well, just earlier today, the prime minister with you government much awaited new governments. the president had assigned the prime minister just a couple of weeks ago to concrete government down smith. he removed 2 captains who were jurors of defense and security from this new government. and it seems that that hasn't gone down well into captain, for part of the military job that led to the removal of the bible work. our case
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just in august of last year. now we know that there has been a puzzle for power between the civilians that are part of the government as well as the military to the members of military that were clerk. this took up the power and i think back in the hearts of this, what's happening right now in this, in this is a discussion between those that were involved in the cooper and the civilian authority. and what's key here is whatever comes out for it, i think is the security of the, especially in the north and also see strikes by the major trade union groups calling from west there with their inability to bring
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closer to, to, to the dates that the government was calling to thank you nicholas hat care. thank you very much, dean and purchase. the quality of that line that i noticed 860 statement antony blinkin is traveling to the middle east for days into the israel palestine ceasefire. president joe biden has said lincoln's diplomacy helped to stop the fighting, but the administration is still facing growing criticism over support for israel tension is too high. a posterior man was shot dead after stabbing to is ready soldiers. number of deaths from cubic 19 in india has passed. 300000. the house ministry reporting a further 4400 fatalities on monday. but doctors and crematorium staff say, many death aren't being recorded to stay with us. that money bots is up next and i'll go with more news out of them. thanks for watching. ah
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ah, the fisa february 2018 at 3 pm local time. the don't june's plummets is or 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 stocks lost so much in a single day. a new york is not alone. the collapse spreads like one fine to frankfurt, sidney. tokyo panicky raps that 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.
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the news? was it possible that a fringe development of automated stock trading? yes or no me could celebration of computer systems, could almost cause a worldwide financial crisis. in berlin. get how chick campaigns for more transparency in the financial sector than the one on the footprints. 100 figuring out of chevy. it's nice to see some of the st. louis by him and he has to live with me. they couldn't and talked to hundreds. doesn't he? just got to have a tower son. when the veterans assigned is eating zine, he doesn't need to sign that. the facebook 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 bots. money bought high frequency traders, place that computers as close as possible to stock exchange computer systems. a process 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 the 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 shares with all the other exchanges faster than the pension fund can. 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, his own $6000.00 within a few milliseconds and with no attached risk. the frequency traders do not have to be act markets permanently. their advantage is most effective when crises, disasters, or political decisions cost strong price fluctuations. essentially high frequency traders benefit from crises and are constantly waiting
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for the next one to occur. in the beginning, the intention was to use greater predictability and foster infrastructure to increase the stability of financial market. in fact, the opposite has occurred. automation has made them more vulnerable. after all, there is no electronic system that cannot be hacked on me. i had a retreating engine, was running in frankfurt remotely, but it was being controlled from london. what happened in this particular case is that internet related outage caused us to lose control over the engine. that was in frankfort. and i remember for
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a couple of hours trying to validate that the engine itself was demobilized. ah, it turned on my engine was actually live. ah, i had actually designed a 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 that was basically trading. it could last, you know, the last $30000000.00, right? it lost a few $100000.00, but it was, it was a terrifying experience. heim bo, tech is a traitor and commerce software developer in stanford, connecticut. i'm bo dag,
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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 fastest data connection between new york and chicago. the homes of america's most important stock exchanges. o, this antique and heim, both players in global battle for the best computer software and the fastest data networks. this contest began
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a long time ago in the casinos of las vegas. at the end of the 1960 s a new generation of scientists recognizes that it is possible to use computers to increase its luck at the tables. pioneers like edward salt and black ho, develop algorithms that allow them to count cards when playing black. jack and to make predictions. doing pharma takes a different approach. in the 1900 seventy's, the physicist makes relate his field of expertise. pharma and his team begin to play they soon discover that it's possible to predict the cost of the bull nose it's current position and speed. and then we embarked on building
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a computer that would allow us to do this. now this was 1976 when we got started. so you have to realize at that point, there were no personal computers or anything like that in pennsylvania is i live in the mountains, if antiques company is working on making the 1st this data connection between new york and chicago even faster. no. who some considerable amount didn't over in feeble, said, feeble, our own toilet data center premier to allow he can had you monday, actually lower from us. you could the don't the senior how do you solve? were you just k? no, to say it was, sheila repeated the maneuver analogy. you can calculate monkey for it should be to just get a cushion tool with absolute faith to the on the shana was willing show, so the get the snell poker depreciate,
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go risk new jersey shield mill. do i want you to know her songs? i've been one to fail, like most as you see people come law school, yan course the form you know on do i salary to stone. the tone that he was told that he was the she doing course, i don't know that he was told to look at leaking more. i'd use you into an algorithm is a rule for answering questions. algorithms provide the foundation for farmers bet. so the casino, oh i, a computer is required to process some grid thems quickly. and the time however, these are large, expensive, and slow are. these begins to change in the mid seventy's,
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the 6502 microprocessor, just the same micro processor guys from apple used to build the computer. doing thomas team designs a computer around the same process. the initial version of it was under the there was a pack of double a battery's under the other on pit switches in the shoes wires running up and down and antenna around the shoulders. the antenna would transmit the signal to a 2nd person who would then place the best from the moment the crew. k spends the ball until the ball until that that's get close. there is typically about 10 seconds the past 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 that that's got closed so that the better had enough time
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to reach over in place. so we had to have the prediction coming pretty fast. the computer we had render a 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, 2nd. doing from a computer became the stuff of legends. it wasn't just any computer. it was the computer built into clothing. while steve job's and steve wozniak were creating the original desktop computer. join comma was building one in a shoe. farmer himself becomes an icon for people working in the field of computer base predictions. pharma and his team eventually decided 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. pharma 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. and let's go to the financial counter bill late to find out what's happening on wall street. the word to describe what's happening and that is industrial average is almost 200 pointed down by 191. all right, now 345000000. amenable on world 3 data, jones industrial average right now. down 271.53 point. putting them down below the 2000 right now, right now and 1975.20 during the 1900. 87 stock market
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crash investors attempt to dump their shares in a panic. 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 technology and the whole trading company is one of the pioneers in the field of big data and market prediction ah, in the early 1990 s. the company is considered a measuring stick by many traders. news like doing whole trading companies found a black oh, a recently put his mathematical skills to the test in las vegas, where he counted cards at the blank check tables in the 1970 s. he is one of the
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1st to recognise the potential of automated financial trading in 1985. he found his own company in chicago, the center of us derivative trading. ah, ah, ah, i'm bo dex joins holstein in september of 997. quantitative analysts are also in high demand in europe, the best emerged from the universities in paris, mathematicians a welcome addition to the market, as all physicists like steph antique. and a book you shall was peter to cleveland today on bush did he show a from gc measure of the family shows off cancer?
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been p l a book you should get more on bush and if you don't really know the initial z axis, a decrease to secure the met him at the penal shayla v. i don't know of a d is this is the duck. if you can't, you know, keep the shortest here, make sure current is occupied again today. he's done. but he did. the 3 are likely to buffet month yet, but the question the go. so you're going to zeppelin, he must show the booth. so, me see, come am, i'm on the show kayla. been to a plan for bone care from the d. v on. but he inactivity too much of it. you look, salman said, you know, done that if he's here for food is to keep me. he shifted montana for she po, process he r t d t the media,
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the new panel while we were doing that were let project, our friend rob sharp came over and said, i just found out about this amazing thing. chaos. so we went up to the lab and we looked at the simulation on the analog computer and we were just made 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, we created algorithms for finding identifying patterns in nature that are described by chaotic dynamics. me the doin, come devote himself to studying happy baton. i predictions to be made. one of these
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areas of study is meteorology, pharma and his team in los alamos, are able to expand the timeframe for precise hurricane predictions from 2 days to 5 . this gives emergency services, valuable time to evacuate people in danger, moon. every time i would talk about this, somebody would say, well, have to play the stock market. and so i kinda hard saying no, i. meanwhile, i heard about the efficient market hypothesis which says that stock markets are inherently unpredictable. those are very popular theory at the time. i didn't believe that. so normally i once again left, he left his job at university of illinois. and i left my job at salah most, and we gathered with some other younger scientists business guy and started
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a company to use computers to the stock market. this was a 991 and we called ourselves production me. ah, i those that goes to that one. yeah. i think most me they'll be like, oh, they're homeless. have found this out. you know, the fund is and it gets a lot kurt that she wants to still continue to move. you know, these are also a, in your field to capture. those are also going to be able to tell you the long i'm going to bone you the long on the, on 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 internet service providers, 5 internet exchanges and important client services have computer stations here. as does vienna stock exchange. the exact location is kept secret and there is no official confirmation of the present stock exchange computers. we have some data in thanks and this is the stations and on and him on the internet. so he's a human community of interest. we've using them. okay, awesome. so this has to be the name and meet them on that one off the market
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share if they can. so kind of time he's of the essence. i mean, he had to get already left. instead, there's a big millisecond industrial distribution shaped small daily for gaming between so finances less than countries. for this reason, the vienna stock exchange is most important server hoover, 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 server of the main stock exchange, proximity his 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 floor and its traditional companies such as ibm and general
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motors on the electronic stock exchange. nasdaq, me, markets, actually one electronic 1st and many of us who are part of that transition from florida electronic markets. we kind of were groomed 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 cheap to explain oh, i got a lot of credit and you got a big promotion for finding a cheat on your x exchange to get prices faster than we should. and years later, when i hit the front page of the wall street journal for my whistle blowing against direct edge, former colleague from hong contacting me by email and said,
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hey, what you turned on a direct edge is very similar to what we were doing and your 6, and i've been whistler for a year, and i had not really acknowledged that i was guilty of the same type of thing that i had turned in. you know, i just had an equated the 2 and it made me realize how difficult it is for people to really see what they're doing in our industry. when we found a prediction only, we didn't know anything about financial markets. our method was to look for patterns in the data 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 left. one lesson was that you've got
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a big stock market also to make a good model. you don't have to pretty 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 friend to break your kneecaps, 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 vs in $2600000000.00. mm. ah,
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welcome to portal. your gateway to the very best advantage there. an online content that you may have met. a new program that this through our platforms makes a connection. and presents a digestible, seeing each the award winning online content on their audience portal with me. sandra gatlin coming soon on out of their new bitcoin flock chain and crypto guarantees. disruptive technology joined with me and introducing a bill to outlaw crypto currency all the way to a fair financial system with big open for software. we can't, we don't want money without paying government award winning. filmmaker tossed and huffman looks at all sides of the complex crypto crypto bit going no change in the internet on our sarah thunder. the filipino workers is
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a big washing by landlord to make them have a job and, and prices to leave overcrowded. 118 mates. of the business one, al jazeera, the hello non tighter and under the top stories on out his era. european leaders have agreed on new sanctions against by the ruse. following the forced landing of a passenger jet. and a ruse used a fight to jet to ground the plain in minsk before resting bell or russian journalists rumen. but i say which, who is on board video progressive, which in detention has been published on social media in the clip. he says he has no health problems and apparently confesses the charges laid against him. furio with a forced landing and arrest is dominating and you lead is so much in brussels. agreed
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sanctions include a band on the use of e u. s. face and airports. and they're called for the immediate release of protests, of which they will be a very strong focus on the utterly inaccessible hijacking of a ryan their flight. by, by levels authorities, there will be a very strong answer because it is a range of behavior to rushing contest. we shouldn't have to understand that this will have to be a consequence of a political crisis is unfolding. and molly, the military is arrested, the president prime minister and defense minister. and i believe to have been taken to a military camp in cathy, they were all in interim positions, following cabinet, re shuffle on monday morning, separate history and unused in about 30 minutes. that's a secretary of state and the blinking is traveling to the middle east for days into the israel palestine ceasefire. president joe vidas had lincoln's diplomacy,
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helped to stop the fighting. but the administration is still facing growing criticism over support. israel tension is too high. a palestinian man was shot dead after stabbing to is ready soldiers a suspect accused of war crimes. in sedans, da for conflict has appeared before the international criminal court. for the 1st time, ali, after a man is charged with $31.00 counts of crimes against humanity, including rape and the killing of civilians. the number of deaths from code 19 in india has passed. 300000 health ministry reporting a further 4400 fatalities on monday. but doctors and crematorium staff say many deaths still aren't being recorded. india has the 3rd highest number of fatalities behind the u. s. and brazil. money bought continues. now, i'll be back with the news straight after that told me that if you can, the,
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the health of humanity is at stake. a global pandemic requires a global response. w h l is the guardian of global health, delivering life saving tunes, supplies, and training to help the world's most vulnerable people uniting across the board as to speed up the development of treatment and vaccine. working with scientists and health workers to learn all we can about the virus keeping you up to date with what's happening on the ground in the ward and in the lab. advocating for everyone to have access to central health services. no more than in the world needs w h, making a healthy world to use for everyone. ah, ah,
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speed is not only essential when operating stock exchange investors and traders also have to react quickly. those who are 1st to recognise price differences between stock exchanges can use this advantage to make a lot of money. at the turn of the millennium, the large banks realized that they are falling behind the competition. in 1999, goldman sachs buying the whole trading company for half a $1000000000.00 hall was supposed to be become like the backbone of goldman and really didn't it. it really was a very, very different culture goldman and at hall and many of the 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
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bowed at joins u. b. s, which is planning to open a new trading floor in stamford. he is tasked with creating the infrastructure from the ground up. i remember the 1st time i heard about high frequency traders the there's an elevator with the person who's very, very senior in the business now. and he was complaining about how they would interfere with the trading profits of the desk he was running. but that they didn't make that much money and i was, that was so, so interesting is 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 make such a small profit? many was surprised by the rise of high frequency trading. the financial journalist jennifer niel, kept
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a close eye on developments from the very beginning. i'm going to lift. okay. the media space. if anybody i'm gonna get to see her took her calls. heidi thomas in the municipal office on facebook said more to me except they get school. hopefully they get more familiar with it. she said, and they love that dog. and i will let you know when it's not on the money that i am actually, if you know, while the explosion of high frequency trading in the early 2 thousands continues,
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time bo day is developing new trading strategies for his employer, u. b. s. he calls it size game. he's algorithm follows the simple logic because large orders are given preferential treatment by the stock market. the money bought dynamically increases in order to remain at the forefront and push out the 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 the whole trade, you will go pretty much instantaneously, belly up. okay, i won't go into details, but it happened other it's a game and chicken in a way. we had to write algorithms that said, if you treated 30000 contracts, you don't want to trade those 30000 contracts. so try to dump them immediately on
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another exchange where some other market makers still quoting 30. so we created all the, this algorithm in this kind of or in terms of getting the largest, what we called participation rate. it turned into this horrible game of chicken and hot potato, where you quoted more than you want, you know, you really should and there in any responsible manner. and then if you actually got hit, which happened you needed to dump it on other people before before they realized that not potato was coming, it was as stupid as you can get. it was, it was just stupid. 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 collapse basically
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was so cool for me. i was like, i literally just loved this. i could see how many months it took for another firm to realize what i was doing and try to introduce 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 trading machines. it was 2007. it was designed to be, you know, a ferrari, but an independent for a to me, you know, for me it was really a dream is to be independent. then realize it was going to turn into an odyssey.
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buddha leaves u b. s. at a time when the stock market's in, the usa and europe are changing dramatically. part of this is due to the high frequency traders. the large investment funds around good 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 pooled source is the stock market to cater to the high frequency traders. and they soon make up the majority of trade. 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 pool. the high frequency trading speed is all important. no. call she'd let it as soon as you me, when you shall g ah, on your own. jimmy was going to shoot left desert, i knew we bought it before the praises we launched, basically into it. we traded through it, we scaled out all over our rooms and membership. some major changes pretty much hit when i called full footprint, and we went to a half percent us market share pretty much overnight and things were going very well until may 2009. when things mysteriously stops working.
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we basically measure that the trades that we intended to do, or in fact profitable and that where the trans with the machine should be doing over the period of 2009, i started seeing changes. ah, the sub training did change quite a bit over the period of time. and what happened was, i, you know, kind of bought into them when i think of now as a mis where people say that, that exchange is toxic in and, you know, without, you know, there's just kind of a blanket term. you know, i'm getting screwed on the exchange. that's but in toxic me. so what i, what was happening is i would keep redirecting our trading towards the changes that
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were less toxic. and then there were none. so the last exchange to go toxic was, was direct edge in may of 2009. i was out of the office and for a week and i came back and there was this dramatic change that was so severe that it basically took the business from modestly profitable to flat. in order to confront the problem, time bo deck immediately buys faster connections and price feet. he optimized his codes, but the problems increase. he watches power, leslie, of the blood drains, out of his company, facing bankruptcy. i'm bo deck encounters a direct edge salesman at a party. i
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. he just told me he outlined 3 major abuses he'd. i got interested and i remember taken a napkin where we found the pen or something, but i, i wish i had this napkin. so i'm, you know, i'm like, when this is, do you mean it works like this? and he explained to me these very, very sophisticated abuses. and 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. and i was invited in the clubbed become a new abuser. i it was 20 minutes of work to fix these problems, but i've been chasing for half a year. and this guy could have just told me half a year ago. and the, if he had told me much earlier, i probably probably wouldn't have crossed my mind how wrong it was. but i was so
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angry. you know, it's very clear to me that you either used the sheets or you were a victim. it was designed, there was no middle ground. you don't, you cannot 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 into bankruptcy during the turbulence of 2010, and 2011. for the 1st time home bowed, he's forced to confront the realities of high frequency trading. do you think the high frequency trading industry wants to say? well, we're using, you know, undocumented special order types and an obscure exemption and regulation and m m s . to get to the top of the queue. know they're going to tell you they're faster than you. and that was, you know, that's the false flag let's say, or don't know, the right term is better, you know,
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the red herring speed is area of a red herring for that for, for a lot of, of tricks that my industry has developed to get ahead of other people, the activities of the high frequency traders remain hidden from view for a long time. in 2010, something happens, the suddenly lifts the veil at 2 32 pm on the 6th of may, 2010. the u. s. financial timing, company waddell and reed places, a huge buying order for forward contracts. valued $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 blessing 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, but 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. he's never fully resolved. the largest flash crashed to date happens on the 5th of february, 2018. its impact is felt around the globe and license deployed in this country shop. i skipped. i could not even flash crash. so i talked with the blower motor's one day. i had to borrow money from the need for the boss from that, because that would, it was money per year and slash crash advice if you are doing
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farmers journey from the casinos to los alamos and on to wall street eventually takes him to oxford, where he now studies stability in complex systems like the financial markets. ah, i think part of what happens in flash crashes though we haven't got the 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 training system that literally cares about microseconds. that means you have to write code that's extremely spare. your signal hits your machine, your machine can 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 think about it pretty much . when i say you, i mean the machine can think about it pretty much i do think we have to worry, that is, markets go 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. and the one thing if we were taking these risks, because it gave us something that was valuable, doesn't give us anything valuable. just makes a few people rich. and they get rich in a crazy way. they get rich by, you know, co locating servers next to the stock exchange and writing algorithms that trade on the instantaneous glitches of the other orders hitting the market. critics of high frequency trading, who spend years in brussels,
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trying to achieve key you wide regulation or the privatization of markets, encouraged by the use 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 photos in europe's markets. regulations pertaining to high frequency trading that were passed by the e u parliament or overturn the last possible moment by the finance ministers in the comes to the european union 15 as a form of nonsmoker vinegar, tomatoes, and felix windows, and even done in constitute, and to show what i don't think would you like a game be done with that? he's a bike, a title had to be back. we'll decide hotline to my talk to. so if and she doesn't, so it's why doesn't clients and these are think with your finance, not lately with you. and i know i know you went to that scene. got i had cars on
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the 101 of your view devices. he asked them if it would come to count the e u. parliament agrees on a holding period of no point 5 seconds and a cancellation fee designed to restrict high speed trading. that is done about the sexual consider cliquish. i thought the meet the truck and how can i, how do i get in touch with wasn't it wasn't the non spencer tradition, london looks wish me but history as it isn't connected with the lightning not happens when i got liberties union with them. if it comes in nice to name, well not really hamlet div for clinton, this will for hundreds be at the fuser. this is for the law,
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the hi. this is mind. hold off, don't implement these and i and i in front of them. so got including to give them them if we track and the in class. and louis is $100.00 smith had financed marked the legal plan. a plan on the can figure that i could spend titan, click on the link you want me to spend also, as i think it's all that as often as you can see it on the satellite. so as a kind of part of your time, if it's locked in 2012 the same year that the you start working on the method to directive home beaudet 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
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not about you know, the possessions. right. and the sad symbols to me 1st rejected. 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, they tune your compensation, would they expect your demands or that's how the 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 the whistling was, was an amazing experience with in think i have been corrupted by the business. and i will tell you one of the 1st time as i realized that i was, was when i had to mow my own line. i live in an area where people don't know their
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own lives. so if you go and i know you're online, it's noticed. and i will say that setting back was liberating, but it took a lot longer than i thought. it's disturbing how much those symbols of status and wealth become essential to people feeling self worth me most of the retaliation was done through the industry quietly and. and you know, it was kind of a strange mix in that the people who were
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least supportive were the or the victims is 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 embarrassed. what investment bank wants to admit 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 didn't get the love from that side of the fence, but was very strange is i got a lot of attention from the high frequency traders, especially a high frequency training executives who kept trying to reach me back.
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i 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 risk they were right about the regulatory response. they push things to a level where they could manage it and they didn't go beyond it. there was one president of a large, high frequency trading firm that had multiple percent market share, 4 percent market share. and 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 to him, so we'll see about that. so year later, i'm at a conference where i debated him and after the conference i said,
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you're totally right. but anyway, worst over everyone's head, i was like there is, i think over 500 pages in the federal registrar of changes and documentation on features of exchange. its its entire purpose was the level playing field. and i think the only people who really read it were library and the traders pretty much because you know, some boys do homeless small the lawn. thought i machine even more so mila, your see to go machine. a book, computer. net, good on google presented. good on the mission of the regular history. 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 what i learned after 20 years is what we ended up doing. so we automated the old
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boys club. it's alive, it's thriving, it's in the goes. ah ah, ah ah, ah hello there, let's start in australia. we've got a weather system. you can see that on the satellite picture, working its way through the southeast and that's bringing while a strong cold wind with it. and it's bringing temperatures down. if we look across south australia and southern parts of new south wales in temperatures dipping down,
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have a look at what happens to melbourne over the next few days. by the time you get to thursday will be in the mid teens with plenty of showers as well. elsewhere things are looking a relatively largely fine and dry. we've got high pressure keeping thing is clear across central and western parts of a strain at 20 degrees in perth, temperatures where we expect them for this time of year. we will see a few showers, kissing the coast of queensland and new south wales. but much of that wet weather is in the south. and as we go later in the week, we'll see that moving across to new zealand. but for now we got some strong winds across the north island, but a rain near as well. it scattered showers and sunshine for the south island have a look what happens by the time we get to wednesday, we've got that weather system working its way over. and that's going to affect parts of the south island. but for now, sunshine and 12 degrees in christ church. ah,
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a faith compelling dory without uttering a single word, liam, conventionality of life. witness through the lens of the human eye on out if there are. oh, this is al jazeera. ah, hello, tina. this is the news that live from london coming up. european leaders agree sanctions against salaries after a passenger plane is forced to land at an opposition activist is detained. a developing crisis in molly with reports the military has arrested the president prime minister and defense minister on a different.


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