[Lex Computer & Tech Group/LCTG] Topic Research -- Programmed Trading and Internet Fast Lanes

[marvin memzin]

Hi I am a newbie so this may be off the mark .. 

If anyone has a  technical presentation on how data analysis can help us to navigate our current inflated  and high risk stock markets , low fixed income rates etc  to screen funds, that would be very useful to all. 

I know many things in mkts are rigged, eg HFT, against the little guys ,but we have to 
live with the status quo as the rigging is not likely to improve .

best , marvin 


Sent from my iPad

> On Nov 9, 2021, at 11:14 AM, Steve Isenberg <smisenberg at gmail.com> wrote:
> 
> 
> Bob,
> You've done a good job researching the topic.  I would be interested in a presentation on this.
> (Especially if it had sure-thing stock tips -- haha)
> -steve
> 
>> On Fri, Nov 5, 2021 at 10:46 AM Robert Primak <bobprimak at yahoo.com> wrote:
>> Programmed Trading and Internet Fast Lanes
>> 
>> How a "black box" full of coiled wires could upset major financial markets in the US. 
>> 
>> I can get a wealth of information and in-depth analysis, including photos of boxes and maps of distances between Internet nodes, all relating to how technology made High Frequency Trading possible, and how HFT affected brokerages in NYC in the period of 2007-2014.
>> 
>> Much of this material is based on NY Times investigations, leading to the book "Flash Boys" by Michael Lewis, then a NY Times reporter. His article "The Wolf Hunters of Wall Street" appeared in the NY Times agazine on March 31, 2014. (Subscriber-only content) A PBS NOVA program (Not available for free now) and a CBS 60 Minutes investigative report followed. (Available for free on You Tube now)
>> 
>> While it is now subscriber-only content (I have a subscription) the NY Times Magazine article contains all the story and technical information needed to make a good, possibly 60 minute presentation on this topic. Depending on how technical we want to get, we could bring a lot of technology and computer networking details to bear on the problem. (I have no engineering or electrical engineering expertise, but maybe someone in our group has this knowledge.)
>> 
>> While the scandal and the SEC reaction to it are in the past (2014) we are seeing other types of fast-lane issues (net neutrality, Internet streaming, and still some HFT market concerns) playing out to this day.
>> 
>> The role of HFT in the 2010 financial meltdown is still controversial, but it may have been a contributing factor according to some analysts. See Michael Lewis's previous book, “The Big Short”.
>> 
>> This topic does not cover the Social Media manipulation of Game Stop's stock. That might be another topic, but it doesn't involved nuts-and-bolts technology (and wires -- LOTS of wires, MILES of wires!) the way the "Flash Boys" scandal did. 
>> 
>> Videos:
>> CBS 60 Minutes: Rigged (15 mins.) I would lead with this video, then go into technical and market details from the articles I've found. So this would be mostly a slide show presentation with a lead video (which probably should not be recorded). Not being a finance person, I would need help with the market details, if they get too specific. 
>> 
>> CBS 60 Minutes: Inside the Collapse (25 mins.)
>> Both are part of the 60 Minutes Archives on You Tube and are free to show. 
>> 
>> The first one is the landmark expose about the "Flash Boys" scandal.
>> 
>> The second one is about the May 6, 2010 financial collapse, led by the loss of liquidity in the sub-prime mortgage markets. (This was the so-called "flash-crash".)
>> 
>> That 2010 scandal was not about technology overtaking market regulations. 
>> 
>> The 2014 book is much more on-point about how technology overtook regulations and caused market manipulations, and disadvantaged some brokerages while favoring others.
>> 
>> -- Bob Primak 
>> 
>> 
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