A Case Of Quant Trading Sabotage About To Destroy Goldman Sachs?

reply to post by RetinoidReceptor


I guess the irregularities were the person that got the program sold it off and somebody else was using it.

That is crazy, when you think about it, it pretty much means GS owns the NYSE.

Originally posted by helpmefindtheway
Denninger is right, the next couple of weeks should be an interesting watch...from a distance.

Any guesses on the Chicago firm that hired him at $1.2 million salary?

Why the FBI? Because he uploaded it to a foreign site? I mean, not every criminal offense is handled by the FBI right? Can someone explain this to a non-american.



edit for typos

[edit on 5-7-2009 by helpmefindtheway]

I didnt understand how they (FBI) found out about this Sergey Aleynikov, did Goldman Sachs suspect him immediately and filed a report when they noticed that someone had copied the proprietary trading code/algos ? GS internal security must have noticed, that code must have been guarded by them like cerberus at the gates.



[edit on 2009/7/5 by reugen]

Goldman Sachs has been very busy trying to destroy America for some time now.

Why should we be surprised to learn that suddenly America is trying to destroy Goldman Sachs?

Poor GS...

The important thing about this is GS has a legal obligation to report this breach if it is indeed them.

if competing firms were to obtain the "code" and use its features, the Financial Institution's ability to profit from the "code's" speed and efficiency would be significantly diminished.

The affidavit is clear in its representation that this is a material breach. GS has a fiduciary responsibility to its stockholders to report this breach. But, alas, I guess federal regulations don't apply here. The information will probably be deemed a national security issue and protected.



[edit on 6/7/2009 by Iamonlyhuman]

Originally posted by Hastobemoretolife
reply to post by RetinoidReceptor

 

I guess the irregularities were the person that got the program sold it off and somebody else was using it.

That is crazy, when you think about it, it pretty much means GS owns the NYSE.

well, i tend to think there are are just too many people with GS ties in government as well...it's hard to turn around inside the beltway without bumping into a current or former employee of GS...that makes this even scarier.

just as a side note off topic...i live in stockton, cal...once the proud owner of being #1 in nationwide foreclosures... this week, 7 days over 3 hundred foreclosed homes cleared escrow by buyers...somebody has alot of available cash snapping up these properties. and this has been going on week after week for months.

[edit on 6-7-2009 by jimmyx]

Originally posted by RetinoidReceptor
Someone in Congress needs to do something BEFORE a crisis occurs and not after it.

HAHAH... oh man...breathe. Sorry...I know you are being serious....you ARE being serious right? That would require three highly improbable plausabilities...

1. Congress would have to actually be ABLE to do something...

2. The 'something' that they did would actually have to have a POSITIVE benefit.

3. Suppose they somehow, miraculously CAN do something POSITIVE, the third and most improbable, is that they could actually do something BEFORE a crisis....

Forgive me, but that is asking WAY too much of the crooks we hired.

reply to post by kosmicjack


It’s amazing how fast a house-of-cards can go up in smoke.

I’ll bring some marshmallows, to the Goldman Sachs’ bonfire. We can always stoke the fire, with worthless dollar bills.

The party is almost over, on Wall St.

What's the lesson we're being taught here? Well for one, karmic laws hold sway, and although karmic justice isn’t necessarily instant, it is definitely inevitable. So be mindful of who you tread on, Goldman Sachs.

“Burn baby, burn!”


[edit on 6-7-2009 by seasoul]

reply to post by ZindoDoone


They extended it because they had some system failures in the the middle part of the day and they wanted to keep it open for a proper close so all transactions were executed. The close is important and they wanted to make sure everything got filled.

Originally posted by reugen

Originally posted by helpmefindtheway
Denninger is right, the next couple of weeks should be an interesting watch...from a distance.

Any guesses on the Chicago firm that hired him at $1.2 million salary?

Why the FBI? Because he uploaded it to a foreign site? I mean, not every criminal offense is handled by the FBI right? Can someone explain this to a non-american.



edit for typos

[edit on 5-7-2009 by helpmefindtheway]

I didnt understand how they (FBI) found out about this Sergey Aleynikov, did Goldman Sachs suspect him immediately and filed a report when they noticed that someone had copied the proprietary trading code/algos ? GS internal security must have noticed, that code must have been guarded by them like cerberus at the gates.



[edit on 2009/7/5 by reugen]

Im surprised they even let their codes known to anyone but the programmers and the fund managers. Who is this guy anyways?

If they let them all go, I do believe though they can front run that volume and I 10000000% GUARANTEE THEY WILL FIND THEM IN THE DARK LIQUIDITY POOL. You think its 100% anonymous still if GS is demanding to know? lol - The people using this will be snuffed out by more sohpisticated programs designed to access these trades.

Basically what I am saying is, the people that stole this are RETARDED because now GS will just either

A) Sniff their trades and front run them since they know them as well

B) Find them "anonymously" somehow in DLiquity and /pown them

Whoever stole these is not only messing with GS, but most likely high ranking "illuminati and NWO" leaders = have fun at abu gharib

[edit on 6-7-2009 by GreenBicMan]

[edit on 6-7-2009 by GreenBicMan]

Originally posted by Hastobemoretolife
reply to post by RetinoidReceptor

 

I guess the irregularities were the person that got the program sold it off and somebody else was using it.

That is crazy, when you think about it, it pretty much means GS owns the NYSE.

What are you referencing here?

reply to post by GreenBicMan


So from where does "dark liquidity" trades execute ? Off shore possibly, ok meh, never head the term before thats all. Thanks for your reply.

It can be hard to front run anything that executes just as fast as you, but many trading firms want to be close (physical close) to the stockexchange so their "phiberoptic cables" dont have to be that long ... I would look across the street first if i were the FBI. ;-)

reply to post by GreenBicMan


I only heard about the delay and at the time there was no explanation given. I didn't hear anything else as to the reason till you posted it, thanks!

Zindo

I think its highly disturbing how Goldman just vanished from the stats and info flow like that...down the memory hole, blip, Oceania has always been at war with Eurasia...

Don't get me wrong, I think GS is an evil enterprise and I'd love to see some comeuppance in that direction. But things are swinging way to fast...

[edit on 7/6/09 by silent thunder]

Lots of props to the outlets that are discussing this most notably zero hedge. Anyways here is a great quote from none other than goldmans attorny sourced from bloomberg.

“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, according to a recording of the hearing made public today. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”

Wonder what Goldman has used it for these years?

Goldman has gotten quite a bit of bad press lately. With Tiabi and now this. Is Goldman vulnerable in some way right now?

market-ticker.denninger.net...

If this is true, hold on to your tin foil hats...

Whoops, don't grab your popcorn and get ready for the show too soon - GS was Obama's biggest single contributor. And probably Bush's. And likely Clinton's. And every member of the Finance Committee too.

Oh well, nothing to see here, move along...

Originally posted by kosmicjack
GS was Obama's biggest single contributor. And probably Bush's. And likely Clinton's. And every member of the Finance Committee too.

now THERE'S a conspiracy I can believe in!

Originally posted by reugen
reply to post by GreenBicMan

 

So from where does "dark liquidity" trades execute ? Off shore possibly, ok meh, never head the term before thats all. Thanks for your reply.

It can be hard to front run anything that executes just as fast as you, but many trading firms want to be close (physical close) to the stockexchange so their "phiberoptic cables" dont have to be that long ... I would look across the street first if i were the FBI. ;-)

Dark Liquidity trades execute here.. but mainly prob in chicago where the CBOT servers are etc.

Well, here is the deal.

.01 ms is all it takes to front-run these trades

In fact, when GS says they have not been effected yet, they could be front running these from day 1 when they found out and just /powned these people behind the scenes or are just playing a game with these people

GS has a .01ms faster hub to the exchange no doubt. But here is how this works.

In a "dark liquidity pool" buyers and sellers are matched 100% TOTALLY ANONYMOUS for large scale orders. Lets say INSTITUTION A wants to sell 10,000 contracts and they are looking for a buyer to match at their price. It is just a way for the HF's and big players to mask trades so they don't have to be broken up in the "open market" where me and you play where they will suffer slippage, especially in non liquid markets where they could pay a very hefty pricetag.

So lets say this.

Lets say I want to purchase 100 Dow Jones Futures Contracts at a market order overnight at 8,000.

I enter the BUY MARKET ORDER for 100 (the contract price is 8000)

But the order gets filled at 8008 for 50 and 8010 for 50 - this happens when either the market is thin like overnight, or when you are trading more than 1,000 contracts at a time during the day (which pro's and inst. do easily)

Take in mind every point is 5 dollars.. so 50*8 and 50* 10 is a $900 smack in the face, and you start out in the hole that much money!

So you can see where dark liquidity pools are a good resource for big money players.

Now lets get back to this..

In these cases GS is prob. with about 99% certainty one of the biggest players in the pool. There are programs that look for volume and try to "snipe" them and buy/sell in front or behind -

It is much more complicated than this of course, but basically in this marketplace there is so much "noise" going on, you try to "ping" the trades and use something called VWAP to get a read on things..

Anyways, to the point, GS has programs I am 1000% sure that sniff these out, and when they know when their trades were supposed to execute they will call the dark liq. owners and demand (and I am sure will get) the peoples info if they have not already - even though this is supposed to be 100% anonymous of course.

I am out of breath lol, but if you want to know more just pm me

[edit on 9-7-2009 by GreenBicMan]

I haven't looked at much of this yet, but supposedly here is the code:
code.google.com...

The GS code is supposedly 15 years old. So that's how long it could have been at play with market manipulation.