Problems with ISEG ECN ??????

**captnemoo** · 07-07-2009 12:09 AM

We can hope........

Originally Posted by chuck44l

Good stuff nemo I say its time to crack down and even the odds for our fellow traders. I would like to learn more about market makers and what actually goes on behind the scenes but talk about a heavily guarded seceret.

**captnemoo** · 07-07-2009 12:09 AM

A former vice-president for equity strategy at investment bank Goldman Sachs has been arrested by the FBI on federal charges related to the theft of program-trading codes, news reports indicate.

Raw Story Former Goldman exec charged with stealing secret computer codes

hmmmmmmmmm LOL

**captnemoo** · 07-07-2009 11:02 AM

killed the run, Its like they want the market to tank right now, more hmmmmmmmmmmmmm makes one wonder

Jul 07, 2009 10:39 AM EDT
Plug Power Receives Award to Operate Residential GenSys Fuel Cells in New York State Homes

EDIT, and down she goes, UNREAL this ISEG killing anything with GOOD news, chewzzzzzzzzzz A staked deck it looks like........

**captnemoo** · 07-07-2009 03:15 PM

If folks all used AON orders, that should take care of the numerous 100 share trades so this scum can make big bucks off of , PER trade"!!!! LOL AON folks, lets kick their A$$ at their game

**captnemoo** · 07-10-2009 02:28 PM

wingssssssssssss

**captnemoo** · 07-12-2009 12:20 PM

Attention Margin Customers Holding ETFs

Effective after the market close on Friday, July 10, the following Exchange Traded Funds (ETFs) had their maintenance requirement increased from 65% to 100%.

Name
Symbol

Direxion Large Cap Bull 3X Shares
BGU

Direxion Large Cap Bear 3X Shares
BGZ

Direxion Developed Markets Bear 3X Share
DPK

Direxion Developed Markets Bull 3X Share
DZK

Direxion Emerging Markets Bull 3X Shares
EDC

Direxion Emerging Markets Bear 3X Shares
EDZ

Direxion Energy Bull 3X Shares
ERX

Direxion Energy Bear 3X Shares
ERY

Direxion Financial Bull 3X Shares
FAS

Direxion Financial Bear 3X Shares
FAZ

Direxion Small Cap Bull 3X Shares
TNA

Direxion Technology Bull 3X Shares
TYH

Direxion Technology Bear 3X Shares
TYP

Direxion Small Cap Bear 3X Shares
TZA

Direxion Daily 10 Yr Treasury Bear 3X Shares
TYO

Direxion Daily 10 Yr Treasury Bull 3X Shares
TYD

Direxion Daily 30 Yr Treasury Bear 3X Shares
TMV

Direxion Daily 30 Yr Treasury Bull 3X Shares
TMF

Direxion Daily Mid Cap Bear 3X Shares
MWN

Direxion Daily Mid Cap Bull 3X Shares
MWJ

Macroshare Major Metro Housing Down Trust
DMM

Macroshare Major Metro Housing Up Trust
UMM

ProShares Ultra Pro S&P 500
UPRO

ProShares Ultra Pro Short S&P 500
SPXU

**captnemoo** · 07-12-2009 12:23 PM

Orders in the following have been canceled due to stock splits.

Effective After Market Close Symbol Split
07/08/09 FAS 1:5 reverse split
07/08/09 FAZ 1:10 reverse split
07/08/09 VOIS 100:1
07/06/09 DINE 1:3 reverse split
07/06/09 GWDP 1:20 reverse split
07/02/09 DLTM 1:10 reverse split
07/02/09 DPTI 1:40 reverse split
07/02/09 VTLP 1:100 reverse split
07/01/09 HNYA 1:1,000 reverse split
07/01/09 TROY 1:100,000 reverse split
06/30/09 AIG 1:20 reverse split
06/30/09 APNS 1:30 reverse split
06/30/09 SIEN 1:500 reverse split
06/29/09 ROTB 1:50 reverse split
06/29/09 SYTO 1:100 reverse split
06/26/09 CNGJ 1:1,500 reverse split
06/25/09 CNVC 1:525 reverse split
06/24/09 EKOJ 1:300 reverse split
06/24/09 MWN 1:2 reverse split
06/19/09 GXPI 1:200 reverse split
06/19/09 LXRA 1:4 reverse split
06/19/09 .VHB 1:10 reverse split
06/18/09 DRGP 1:100 reverse split
06/17/09 FREZ 1:4.07 reverse split
06/16/09 MAWI 1:100 reverse split
06/16/09 SLRW 7:1
06/15/09 ONEV 1:20 reverse split
06/15/09 CYID 1:4 reverse split
06/15/09 EBOF 2:1
06/15/09 ABC 2:1
06/12/09 ABVI 1:300 reverse split
06/11/09 EFUL 1:40 reverse split
06/10/09 AMXG 1:10 reverse split
06/10/09 UFS 1:12 reverse split

**captnemoo** · 07-25-2009 11:47 PM

Sen. Schumer warns SEC that it must curb high-speed traders' flash order advantage
By The Associated Press
On Saturday July 25, 2009, 6:08 pm EDT

Companies:Nasdaq omx group inc.
Sen. Charles Schumer, D-N.Y., has asked federal securities regulators to crack down on a high-speed computing advantage that large financial firms have over other investors.

If the Securities and Exchange Commission does not curb a practice that Schumer says gives certain professional investors an unfair advantage, he told the agency in a letter that he will try to do so legislatively.

"The integrity of our capital markets is being compromised by the ability of some insiders to view order information before it is available to the entire market," Schumer said in a letter Friday to SEC Chairman Mary Schapiro. This allows them "to profit from that information at the expense of other investors."

So-called flash orders allow certain members of Direct Edge, Nasdaq and BATS exchanges access (for a fee) to buy and sell order information for milliseconds prior to that information being made available to the public. High-speed computer software can take advantage of that brief period to allow those members to trade ahead of those orders -- at better prices -- and therefore profit from advanced knowledge of buying and selling activity.

"If the SEC fails to curb this practice, I plan to introduce legislation in the U.S. Senate to prohibit the use of flash orders," Schumer added.

Schapiro said last month that the SEC was working to identify emerging risks to investors, including so-called "dark pools," or automated trading systems that don't publicly provide price quotes. Large institutional investors like banks, pension funds and mutual funds use such systems when they buy and sell large blocks of shares.

While the pools -- where some flash orders are sent first -- are said to generate additional liquidity in the market, Schapiro has noted that they create a lack of transparency that could cause suspicion and speculation, and cut the public out of the mix. Given the risk, Schapiro has maintained that dark liquidity may face increased regulatory action and scrutiny in the future.
Even BATS Exchange Inc. CEO Joe Ratterman called for an industry review of the practice earlier this month. In a July 7 e-mail to BATS members and others in the industry, Ratterman noted that the SEC currently deems flash orders to be legal and operating within regulatory guidelines, but said BATS is ready to participate in an industry review of potential issues, "including the possibility that they (BOLT, Flash and ELP flash order services) create a two-tier market."

Spokespersons for Direct Edge ECN LLC and Nasdaq OMX Group Inc., which run the ELP and Flash Orders services, respectively, weren't immediately available for comment Saturday.

Schumer wants to curb traders' flash orders - Yahoo! Finance

**captnemoo** · 07-26-2009 12:17 AM

The Flash Trading Org Chart
Submitted by Tyler Durden on Sat, 07/25/2009 - 16:27

Charles Schumer Derivatives Direct Edge Flash Trading Goldman Sachs HFT High Frequency Trading Liquidity Pre-Trade

Zero Hedge will attempt to categorize all the relevant players in FlashTradingGate. This is the initial focus of Senator Charles Schumer's recent campaign for market equality and transparency. As we will undoubtedly miss critical connections between these and other pertinent industry players, we solicit readers' insight as we develop this org chart: we invite readers to send emails to: flashtrading@zerohedge.com with any input.

For a sense of services provided by Direct Edge, Here is the Direct Edge fee schedule.

And here is the July 2007 commentary by Goldman Sachs and Citadel when the two firms purchased a 19.9% stake each in Direct Edge.

"Direct Edge has quickly become a major market center for U.S. equities by virtue of its innovative market model and competitive pricing schedule" said Greg Tusar, Managing Director, Goldman Sachs.

"Goldman Sachs is a fantastic addition to the Direct Edge partnership," said Mathew Andresen, Co-Head of Citadel Derivatives Group. "Volumes have grown significantly in recent weeks and we expect that trend to continue as Direct Edge becomes a more important liquidity destination for the marketplace."

For some other, more recent and relevant perspectives by Goldman's Greg Tusar, who has been abnormally vocal about another aspect of HFT, pre-trade monitoring, read here.
The Flash Trading Org Chart | zero hedge

Hmmmmmmmmmmmmmm Goldie strikes again ......... Read the pricing charts and the services, in the link, Direct Edge provide of this new way to scam the investing public!!! And in the first chart looks who is first in line with this scamming trading,,,,,,,,ISEG /International security Exchange

OHHHHH and read the comments below the article LMAO, I see why Jim Rogers moved out of the country, I use to despise the guy, now I am leaning towards , he is one smart cookie........

One reply to the article,,,,,,,,,,,,
by RobotTrader
on Sat, 07/25/2009 - 19:05
#15249

I guess we are going to have to watch the most heavily traded lotto tickets trade on a 1-minute chart for entertainment purposes, to see how well the "Channelingstocks.com" Program Robots buy and sell these issues thousands of times a day.

http://clearstation.etrade.com/cgi-bin/bbs?post...

Wondering how the robots handle a scenario where they suddenly burst out of the channel and start going off in a different direction?

Primary examples would be the XLF, RKH, and KRE. They have been "pinned" in a small trading range for months.

Which way will they break?

And if so, how will the robots trade these once they break off in a different direction?

http://clearstation.etrade.com/cgi-bin/bbs?post...

reply

And another, Truly fictitious buying and selling, NO real buyers or Sellers, Just HFT ing going on, Crazy they get away with this. IMHO

by Anonymous
on Sat, 07/25/2009 - 22:03
#15318

Hey G, I do appreciate your posts, but this certainly looks like a ripoff to me. I'm curious what you think...

"Let's say that there is a buyer willing to buy 100,000 shares of BRCM with a limit price of $26.40. That is, the buyer will accept any price up to $26.40.

But the market at this particular moment in time is at $26.10, or thirty cents lower.

So the computers, having detected via their "flash orders" (which ought to be illegal) that there is a desire for Broadcom shares, start to issue tiny (typically 100 share lots) "immediate or cancel" orders - IOCs - to sell at $26.20. If that order is "eaten" the computer then issues an order at $26.25, then $26.30, then $26.35, then $26.40. When it tries $26.45 it gets no bite and the order is immediately canceled.

Now the flush of supply comes at, big coincidence, $26.39, and the claim is made that the market has become "more efficient."

Nonsense; there was no "real seller" at any of these prices! This pattern of offering was intended to do one and only one thing - manipulate the market by discovering what is supposed to be a hidden piece of information - the other side's limit price!"

http://market-ticker.org/archives/12...Is-A-Scam.html

reply

**captnemoo** · 07-26-2009 12:51 AM

Posted by Karl Denninger in Regulatory at 08:22

High Frequency Trading Is A Scam
The NY Times has blown the cover off the dark art known as "HFT", or "High-Frequency Trading", perhaps without knowing it.

It was July 15, and Intel, the computer chip giant, had reporting robust earnings the night before. Some investors, smelling opportunity, set out to buy shares in the semiconductor company Broadcom. (Their activities were described by an investor at a major Wall Street firm who spoke on the condition of anonymity to protect his job.) The slower traders faced a quandary: If they sought to buy a large number of shares at once, they would tip their hand and risk driving up Broadcom�s price. So, as is often the case on Wall Street, they divided their orders into dozens of small batches, hoping to cover their tracks. One second after the market opened, shares of Broadcom started changing hands at $26.20.

The slower traders began issuing buy orders. But rather than being shown to all potential sellers at the same time, some of those orders were most likely routed to a collection of high-frequency traders for just 30 milliseconds � 0.03 seconds � in what are known as flash orders. While markets are supposed to ensure transparency by showing orders to everyone simultaneously, a loophole in regulations allows marketplaces like Nasdaq to show traders some orders ahead of everyone else in exchange for a fee.

In less than half a second, high-frequency traders gained a valuable insight: the hunger for Broadcom was growing. Their computers began buying up Broadcom shares and then reselling them to the slower investors at higher prices. The overall price of Broadcom began to rise.

Soon, thousands of orders began flooding the markets as high-frequency software went into high gear. Automatic programs began issuing and canceling tiny orders within milliseconds to determine how much the slower traders were willing to pay. The high-frequency computers quickly determined that some investors� upper limit was $26.40. The price shot to $26.39, and high-frequency programs began offering to sell hundreds of thousands of shares.

But then the NY Times gets the bottom line wrong:

The result is that the slower-moving investors paid $1.4 million for about 56,000 shares, or $7,800 more than if they had been able to move as quickly as the high-frequency traders.

No. The disadvantage was not speed. The disadvantage was that the "algos" had engaged in something other than what their claimed purpose is in the marketplace - that is, instead of providing liquidity, they intentionally probed the market with tiny orders that were immediately canceled in a scheme to gain an illegal view into the other side's willingness to pay.

Let me explain.

Let's say that there is a buyer willing to buy 100,000 shares of BRCM with a limit price of $26.40. That is, the buyer will accept any price up to $26.40.

But the market at this particular moment in time is at $26.10, or thirty cents lower.

So the computers, having detected via their "flash orders" (which ought to be illegal) that there is a desire for Broadcom shares, start to issue tiny (typically 100 share lots) "immediate or cancel" orders - IOCs - to sell at $26.20. If that order is "eaten" the computer then issues an order at $26.25, then $26.30, then $26.35, then $26.40. When it tries $26.45 it gets no bite and the order is immediately canceled.

Now the flush of supply comes at, big coincidence, $26.39, and the claim is made that the market has become "more efficient."

Nonsense; there was no "real seller" at any of these prices! This pattern of offering was intended to do one and only one thing - manipulate the market by discovering what is supposed to be a hidden piece of information - the other side's limit price!

With normal order queues and flows the person with the limit order would see the offer at $26.20 and might drop his limit. But the computers are so fast that unless you own one of the same speed you have no chance to do this - your order is immediately "raped" at the full limit price! You got screwed, as the fill price is in fact 30 cents a share away from where the market actually is.

A couple of years ago if you entered a limit order for $26.40 with the market at $26.10 odds are excellent that most of your order would have filled down near where the market was when you entered the order - $26.10. Today, odds are excellent that most of your order will fill at $26.39, and the HFT firms will claim this is an "efficient market." The truth is that you got screwed for 29 cents per share which was quite literally stolen by the HFT firms that probed your book before you could detect the activity, determined your maximum price, and then sold to you as close to your maximum price as was possible.

If you're wondering how this ramp job happened in the last week and a half, you just discovered the answer. When there are limit orders beyond the market outstanding against a market that is moving higher the presence of these programs will guarantee huge profits to the banks running them and they also guarantee both that the retail buyers will get screwed as the market will move MUCH faster to the upside than it otherwise would.

Likewise when the market is moving downward with conviction we will see the opposite - the "sell stops" will also be raped, the investor will also get screwed, and again the HFT firms will make an outsize profit.

These programs were put in place and are allowed under the claim that they "improve liquidity." Hogwash. They have turned the market into a rigged game where institutional orders (that's you, Mr. and Mrs. Joe Public, when you buy or sell mutual funds!) are routinely screwed for the benefit of a few major international banks.

If you're wondering how Goldman Sachs and other "big banks and hedge funds" made all their money this last quarter, now you know. And while you may think this latest market move was good for you, the fact of the matter is that you have been severely disadvantaged by these "high-frequency trading" programs and what's worse, the distortion that is presented by these "ultra-fast" moves has a nasty habit of asserting itself in an ugly snapback a few days, weeks or months later - in the opposite direction.

The amount of "slippage" due to these programs sounds small - a few cents per order. It is. But such "skimming" is exactly like paying graft to a politician or "protection money" to the Mafia - while the amount per transaction may be small the fact of the matter is that it is not supposed to happen, it does not promote efficient markets, it does not add to market liquidity, the "power" behind moves is dramatically increased by this sort of behavior and market manipulation is supposed to be both a civil and criminal violation of the law.

While the last two weeks have seen this move the market up, the same sort of "acceleration" in market behavior can and will happen to the downside when a downward movement asserts itself, and I guarantee that you won't like what that does to your portfolio. You saw an example of it last September and October, and then again this spring. As things stand it will happen again.

This sort of gaming of the system must be stopped. Trading success should be a matter of being able to actually determine the prospects of a company and its stock price in the future - that is, actually trade. What we have now is a handful of big banks and funds that have figured out ways around the rules that are supposed to prohibit discovery of the maximum price that someone will pay or the minimum they will sell at by what amounts to a sophisticated bid-rigging scheme.

Since it appears obvious that the exchanges will not police the behavior of their member firms in this regard government must step in and unplug these machines - all of them - irrespective of whether they are moving the market upward or downward. While many people think they "benefited" from this latest market move, I'm quite certain you won't like it if and when the move is to the downside and the mutual fund holdings in your 401k and IRA get shredded (again) by what should be prohibited and in fact result in indictments, not profits.

PS: Make sure you read Part 2 of this missive, to be found here.

High Frequency Trading Is A Scam - The Market Ticker

Thread: Problems with ISEG ECN ??????

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yup

Former Goldman exec charged with stealing secret computer codes

PLUG,,,, great news just now and ISEG

And all the 100 share trades

read here

I wonder if the SEC cops did this??? LOL

Recent RS

Sen. Schumer warns SEC that it must curb high-speed traders' flash order advantage

The Flash Trading Org Chart

From the last link in previous post,,,,,,,,,,

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