Does Goldman Sachs computer based trading amount to manipulation?

mode7 | mode7's CAPS Blog | JULY 07, 2009

The Motley Fool - So Zero Hedge's blog has been on fire lately with Goldman Sachs posts. Very interesting reads if you have the time. I think ultimately the crux of the issue is what type of algorithms are being used to generate profits for these huge trading firms?

Are there unknown ways to mathematically manipulate the market, skimming profits from all the trades going on at the NYSE, where the average person would be unable to notice?

Essentially, the quote within Zero Hedge's guest post was:

“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Facciponti said. Read more

Emphasis added

Read more at zerohedge's blog


Joaquin July 7, 2009 - 3:40pm
( categories: Economics: USA )

EOM

Joaquin July 7, 2009 - 3:41pm

Like Goldman S....

Oh.

Shit.

Nevermind.

Just think what a low latency program could do the internet, for example. One person could monopolize all those "First!" posts.

And where would we be then, eh?

AMC July 7, 2009 - 5:24pm

Wouldn't that be an ideal partner for Goldman the next time they get into deep trouble?

Numerian July 7, 2009 - 9:58pm

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.