ah ah ah, i'm not that isn't and know how to tell stories on august. the 24th, when to roland pigs has officially begun in beijing. the opening ceremonies underway making beijing the 1st city to host both the summer and winter olympics. but the build up has been dominated by over 1900 restrictions and diplomatic boycotts. we're going to go live now to the stadium, to speak to associated press correspondence. stephen wade. steven, how does this build up compared to the opening ceremony for the beijing games in 28?

my 1st thought is it's so very, very different in 20. 08. i remember being in the stadium. it was about 32 degrees hot sweltering night. here it's below 0, probably 2 or 3 below 0 to stadium in 2008 was failed. 91000 people this time we have a select, a few fans. very, very few fans. so it's a very, very different different atmosphere. the winter games are of course, much smaller than the summer games. cobra, 1900 because there's still a problem how the district sions, they are compared to say to kill last year. i would say 10 times magnitude difference. i'm trying to get in china. you had to pass to test coming from outside the country. you got on the plane, you arrived near port here at capital airport. you were tested, you're put in your hotel by bus. from then we're inside this loop in the side. this bubble we, meaning journalists, natalie, it's also cannot move out. all we can do is go to the hotel, get on a bus,

go the press center, go to a venue, get back on the bus, go back to the hotel. absolutely no contact with people live in bay. jiggs. i worked here back in the mid to thousands. i have friends here. there's no way to get out and see them when i can see a friend of mine. you know, 500 meters away, but i cannot get outside this bubble area to visit. so it's much, much more restrictive in tokyo and tokyo people to get around after 14 days go have dinner. none of that here will be out of the country as soon as these games are over. that's just the way it is because it called it and because of china's measures against him. stephen white, thank you very much indeed. when the games are happening during a time of increase tensions between russia and the west over ukraine, russian president vladimir putin is in china and moscow and beijing have at least a joint statement opposing the expansion of nato and accused the alliance of cold war approaches. katrina, you has more from beijing, china really still on paper, wants to maintain its neutral stance,

but there are some statements within this state, which implies strong support of russia when it comes to its policy in ukraine or its actions on the ukraine border. the joints them and said that each country supports each other's foreign policy, that no country should improve its security at the expense of others. and also the both countries of per unilateral actions towards specific countries in the us leader says the leader of iso has been killed and the special forces operation in north western city came off like she me, i'll korea, she was one of at least 13 people who died during the raid and rebel held it lead province. you're a prime minister ball is johnson's facing pressure to show up his premiership as the so called potty gates, scandal deepens for senior age. resigned on thursday, including johnston's chief of staff, private secretary and director of communications. india has officially recorded

more than half a 1000000 corona virus deaths, but some experts say the actual figure is much higher. you know, mac on variance is behind the countries 3rd wave of cobra. 19 a study published in the journal science estimates about 3000000 people have died. bali has reopened to all foreign travelers. indonesian island depends heavily on tourism and its opening up the border despite a rise in covered $900.00 cases, visitors will have to coordinating for between $5.00 to $7.00 days depending on their vaccination status. evacuation orders are being issued in madagascar as a large cycle of approaches from the indian ocean. i clone about said i is forecast to hit the east coast on saturday ways. high winds and rain that could effect up to 600000 islanders and those are the hard lines of the day. the 24th a winter olympics begins in beijing by ah.

ready ah, the 5th of february, 2018 at 3 pm local time. the dow jones plummets as of 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 stalks law so much in a single day and new york is not alone. the collapse spreads like wildfire to frankfort, sidney, tokyo, panic erupt. 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.

ah, how is it possible that a fringe development of automated stock trading yesterday, nomic acceleration of computer systems, could almost cause a world wide financial crisis in berlin? gad, chick campaign. some more transparency in the financial sector than the one on the store for grants. 100 for your average of chevy is no neatness, decent, hazardous, headless while human be us to live was in music, couldn't, and talked to a 100 words. m doesn't go from the other truck out to a 1000. once he runs across, i like the unit zine. he's yolande to about a 1000 as the festival privately. essentially high frequency trading significantly

reduces the time that 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 up 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 box money box. high frequency traders place their computers as close as possible to stock exchange computer systems. a protest 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 various stock exchanges. when the order

arrives at the 1st stock exchange, 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 kath, 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 has earned $6000.00 within a few milliseconds, and with no attached risk. ah, i frequency traders do not have to be active in the kits permanently. their advantage is most effective when crises, disasters, or political decisions caused strong price fluctuations. essentially, high frequency tre does benefit from crises and constantly waiting for the next one

to occur. in the beginning, the intention was to use greater predictability and fossa infrastructure to increase the stability of financial markets. in fact, the opposite has occurred. automation has made them more vulnerable. after all, there is no electronic system that cannot be hacked. ah hm. i had a bi, you're trading engine was running in frankfurt remotely, by it was being controlled from london. what happened in this particular case is that in internet related outage caused us to lose control over the engine. that was in frankfort. and

i remember for a couple hours i trying to validate that the engine itself was, i'm demobilized. ah, it turned out my engine was actually life. i had actually designed feature that said if you break connection with the mother ship, stop trading. but that feature had parameter, it was off, i had this engine, there was basically a trade in a could. a last yogurt was $39.00 rate. it wasp a few $100000.00. but it was, i was a terrifying experience. i'm bo derek is

a trader and commerce software developer in stanford, connecticut. i'm bodeo 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 data connection between new york and chicago. the homes of america's most important stock exchanges, stiff antique and heim bonus players in a global battle for the best computer software and the fastest data networks.

this contest began a long time ago in the casinos of las vegas. at the end of the 1960s, a new generation of scientists recognizes that it is possible to use computers to increase its luck at the tables. pioneers, like edward thought, and blair, how develop algorithms that allow them to count cards when playing black jack and to make predictions doin pharma takes a different approach. in the 1970s, the physicist makes roulette his field of expertise bump, farmer and his team begin to play ramp. they soon discover that it's possible to predict the cost of the ball if one knows its current position and speed. and then we embarked on building

a computer that will allow us to do this. now this was lighting 76 got started. so you have to realize at that point, there were no personal computers. rifka in pennsylvania is a leg in the mountains, stiff antiques company is working on making the fastest data connection between new york and chicago even faster. no, he's also considered more play sampler d mouth bother. in fever, said he bought our own toilet data center ever. it put me up to on allow, he just kinda had you one moment that had you already load law firm as your e could the don the senior had your keys or were you just getting no? couture. c, horseshoe law is separated. the maneuver and energy sac. yeah. or can't hide smoky face. it don't say repetitious. can i push it to or if with absolutely mom buffy toulon on lashana who i've run. sure. so the gather snell,

pope dupree. she can go risk when you jealousy, she or mildew ashanti domain club. so i was one to fail or counteract model she. is he empty, pu, come laska yan, cause the for me now on? do i sorry to, was donna ill told that he was told that is who was this? you don't, i course. i don't know. look, don't that he will stand to look a sasha, i, paddy are leaky more had use you into an algorithm. is a rule for answering questions. algorithms provide the foundation for farmers bed, said the casino. oh no computer is required to process algorithms quickly. the time, however, these are large, expensive and slider. this begins to change in the mid

19 seventy's and the 6502 microprocessor had just come out same microprocessor. the guys from apple used to build the apple computer billing. thomas team designs a computer around the same process or the initial version of it was under the armpit. there was a pack of double lay batteries under the other arm. pit switches in the shoes, wires running up and down an antenna around the shoulders. the antenna would transmit the signal to a 2nd person who would then placed the baths from the moment, the croupier since the ball until the ball until the basket closed. there is typically about 10 seconds to pass 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 the vets got closed. so that the better had enough time to reach over and placed verbs. so we had to have the prediction coming pretty fast. the computer we had ran very 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, a 2nd don't pharmacy computer became the stuff at legends. it wasn't just any computer. it was the 1st computer built into closing, while steve jobs and steve wozniak, were creating the original desktop computer doin farmer was building one in a shoop. farmer himself becomes an icon for people working in the field of computer base predictions. farmer and his team eventually decide that that winnings at the roulette wheel do not justify the risks they are taking.

ah, they returned to more serious scientific fields. farmer 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 allocation, financial gas, or cantonsville hardly to find out what's happening along the way. one word to describe was happening in that is the child's industrial averages are almost $200.00 points. it is down by a $191.00 and been out of all right now. for you. 345000000 shares available day on wall street. the dow jones industrial average right now down 271.53 point. putting the down below 2000 mark now right now in 1975 wait. when

during the 1987 stock market crash, investors attempt to dump their shares in a panic. they 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 technologies. the whole trading company is one of the pioneers in the field of big data and market addictions. in the early 19 nineties, the company is considered a measuring stick by many traders like doin pharma holl trading companies, found a black hole had originally put his mathematical skills to the test in las vegas

where he counted cards at the blackjack tables in the 1970s he is one of the 1st to recognize the potential of automated financial trading. in 1985, he found his own company in chicago, the center of us derivative trading i'm bo deck joins holstein in september of 1997. quantitative analysts are also in high demand in europe. the best emerge from the universities in paris. mathematicians are welcome additions to the market as our physicists like steph, antique allie parker, sherwood street, totally boldwood a on bush edition, shall he don't. she said medea bashfully phelan, mazar?

of course sir. it had been purely parker shade elmore on bushes. if he shine, don't she really windy shoes? q g r a please a dick rector secure. lametre metal finance chair. vive dawns known of a dig. this is space the data if she's the cal trula teachers to she are making sure current is out of his the can cooler t. c. damper. she did the 3 allow any type of shipment yet. but the question, la garza is gone. is that what she monsieur, did i bosa me say come, emma mondor? shall kayla been prepared? he bow a plan. go to a bunker, a key from the de heathy on betty ah inactivity too much of a time. you look, salmon sit sitina is he done that if he's here of her food whiskey they keep on out of here. d t me t. she's a mom, jennifer, she po, process. he are

a multi days activity. the project media though of new bell while we were doing the roulette project, our friend rob shaw came over and said, i just found out about this amazing thing with chaos. we went up to lab and we looked at the simulation, the ala computer and we were just maze 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, um, we created algorithms for finding identifying patterns in nature that are described by chaotic dynamics. i'm doin ca devotes himself to studying pappy's,

the tell our predictions to be made. one of his areas of study is meteorology, pharma and his team in los alamos, are able to expand the time frame for precise hurricane predictions from 2 days to 5. this gives emergency services, valuable time to evacuate people in danger. with every time i will talk about this, somebody would say, well, have you apply the stock market? and so i kind of chart saying no b, while i heard about the efficient market hypothesis, which says the stock market, sorry, inherently unpredictable, was a very popular theory at the time i didn't believe. so normally i once again left, he left his job at university of illinois, and i left my job. it was alamos, and we gathered with some other younger scientists business guy and started company

to use computers to protect the stock market. this was in 1991 and called herself critical. mm. those are those above if any one? yeah. i think most 3, how do you so much? not a lisa my like all the year to hope i see this. i'll do not to have on the fund is on the get her say taylor that she wants to still continue to if i move got, you know, like the 3rd tech counter in math know in the appeal or to gut feeling arctic. also lab rasa. very, when the hour to day buffy you along on a born you the long on abaz's done. 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

located in an anonymous building on the outskirts of vienna, austria. the company has 13 such co location centers throughout europe. more than $100.00 internet service providers. 5 internet exchanges and important cloud services have computer stationed here. as does vienna stock exchange, the exact location is kept secret and there is no official confirmation of the presence of stock exchange computers. weekly for the sky shift, my biggest infection behaved is the stations gentleman and im talking to look at bonham. the internet is 9 darvin, a, goldman sachs young. these are a few more community of interests of yours in the men optimize. awesome, awesome. so that has to be of been funerals and standard on to me. man. meet the

man that one off the mark. eureka shaped out frequency. time is of the essence as a communicate 1st, we've an image to give all the love in steps this he comp now bargain, victor, him millisecond buffet and does his fear on the should we figure shapes more bailiff on gaming is himself announced this last than countries of it, for this reason, the vienna stock exchange is most important server over 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 service of the main stock exchange. proximity is 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 it's traditional companies such as

ibm and general motors and the electronic stock exchange. nasdaq european markets, actually one electronic 1st many of us who were part of that transition from florida electronic markets. we kind of were groaned 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 cheat to exploit. ah, they got a lot of credit and he got a big promotion for finding a cheat on the, on the or exchange to get prices faster than we should of. and i'm now years later when i hit the front page of the wall street journal for my whistle blowing against direct edge, i'm a former colleague from hall. i contacted me by email and said,

hey, what you turned on a direct edges. very similar to what we were doing on your next and i, i've been whistleblower for a year and 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 acquainted the to 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 critics young me, we didn't know anything about financial markets. our method was to look for patterns in the data and, 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

a let. one lesson was that you've got that big. the stock market also to make a good model. you don't have to pretty 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 threaten to break any caps, ah, 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 via us in 2006 rod reminder in out in

south korea military service is compulsory but some refused to take part one at one eigth rates. those dodging the draft on al jazeera on counting the cost threats of sanctions again. and the claims stand off fought well, they really bite europe's energy supplies at the cross. his can fill the gap and the whole trade organization supports try that again for you. west is aging, with count on the cost on al jazeera weavers. it trying out. grazing land is shrinking in some roots long used by wildlife for migration, have been blocked by human settlements. to deal with all this, kenya needs more money for conservation. and with the koran of ours, pandemic keeping many visitors awake revenue from tours im isn't enough. here at the outset of national park, an annual ceremony has been launched the hall parisha than individuals pay $5000.00

to name an elephant. the aim this year is to raise $1000000.00, much of it for conservation initiatives. ah robinson and bill how the top stories are the 0, the 24th. when to virtually begun in beijing, the opening ceremony is under way making beijing. the 1st city to host both to summer and winter olympics. but build up has been dominated my coven, 1900 restrictions and diplomatic boycotts associated press. correspondence, stephen weight has more from the opening ceremony invasion. my 1st thought is, it's so very, very different. and 28. i remember being in the stadium, it was about 32 degrees hot sweltering night. here it's below 0,

probably 2 or 3 below 0. the stadium in 2008 was filled. 91000 people this time, we have a selected few fans. very, very few fans, so it's a very, very different different atmosphere. the winter games are of course, much smaller than the summer games. it's much, much more restrictive in tokyo and tokyo people get around after 14 days. go have dinner. none of that here will be out of the country as soon as these games are over. that's just the way it is because it cove it and because of china's measures against it. all the games are happening during a time of increase tensions between russia and the west over ukraine. russian president vladimir putin is in china, moscow, and beijing released a joint statement opposing the expansion of nato, and accused the alliance of cold war approaches. us says the leader of ice has been killed and a special forces operation in north western city of him. i'll hi, she me, i'll have a she was one of at least 13 people who died during the rate and rebel held. it'll

have problems. you can probably minister bars johnson's facing pressure to show up his premier ship is the so called party gave scandal deepens for senior age. resigned on thursday, including johnson's chief of staff, private secretary and director of communications. india has officially recorded more than half a 1000000 corona virus deaths, but some experts say the actual figure is much higher. the micron variant is behind the countries 3rd wave of corbett 19. a study published in the journal science estimates about 3000000 people have died. evacuation orders are being issued in madagascar as a large cycle and approaches from the indian ocean cycle. bassett, i is a forecast to hit the east coast on saturday with high winds and rain. you could effect up to 600000 islanders those than the headlines coming up next. it's money bots are by noon.

speed is not only essential when operating a stock exchange. investors and traders also have to react quickly. those who are 1st to recognize 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 their competition. in 1999 goldman sachs spies, the whole trading company for half a $1000000000.00 hall was supposed to be become like the backbone of view of goldman. i really didn't it in it really was a very, very different culture goldman than, than i haul him and many of my people i related to and didn't feel at home dissatisfied with the investment banks, business practices, a number a former whole trading company employees leave goldman sachs in 2003 bolduc 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 i frequency traders. i the was an elevator with a person who's very, very senior in the business now. and he was complaining about how they would interfere with, you know, the, the trading profits of the desk he was running. but that they didn't make that much money. and i was, that was so interesting as 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, what, why would you do all that work? and nice makes such a small profit. ah, many was surprised by the rise of high frequency trading. to financial journalist jennifer niel kept a close eye on developments from the very beginning of

yashira. and he thought you might often crispy nausea to la focus in the media if as you heard his best, lima viani, jackie said for the higher ed took a box, you can barely now. kylie thought her does it. they call that more as yes was he not the hapless gen highly. if it got it from i see that he get his get was them not he actually and molested. also live on our thought alpha by looks that more and on the mean, it's a mixed up and get cookie and i the whole thing off yet. can you please stop it more for me? i'll be in it. he said aloud as scarce insect, a laser dog la volatility, so mushy. a asthma mo nadar pick the reality damask in exactly it is on, on day after the mania. ha, if minimize that. i felt like is there anything else while the explosion of high frequency trading in the early 2 thousands continues. i'm bo deck is developing new

trading strategies for his employer, u. b. s. he calls it sighs game. his algorithm follows a simple logic because large orders are given preferential treatment by the stock market. the money bought dynamically increases its order to remain at the forefront and push out 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 they all trade, you will go pretty much instantaneously. belly up. ok, i won't go into details, but it happened. it's a game of chicken in a way we had to write algorithms that said, if you traded 30000 contracts, you don't want a trailer 30000 contracts. so try to dump them immediately on another exchange

where some other market makers still quoting 30000 x. so we, we created all these, this algorithm in this kind of, or in terms of getting the largest, what we call participation rate. it turned into this horrible game of chicken and hot potato, where you quoted more than you want. and then you really should enter in any responsible manner. and then if you actually got hit, which happened, you needed to dump it on other people before i before they realised that the potato was coming, it was as stupid as you can get. it was, it was just stupid. ah, 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 u. s. option market to the brink of like collapse

basically. it was so cool for me. i was like it just like, literally just love this i. i could see how many months it took for another firm to realize what i was doing and tried and true 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. there was a ah, 2007 that was sir. designed to be you know, a ferrari from an independent for to me area for me were, was really a dream is to be independent. but then realize it was going to turn into an odyssey

boat ag leaves u b. s. at a time when the stock market in the usa and europe are changing dramatically. part of this is due to the high frequency traders. the large investment funds are angered 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 pools forces the stock market to cater to the high frequency traders. and they soon make up the majority of traits. some estimates put the number as high as 70 percent before long. the banks themselves cannot resist the temptation of the high

frequency money and open up the dark pools to high frequency trading. speed is all important. le ledger shaft hoshevely because the you know, when you're georgie ah, or v all do you me cause going old? should left desert eddie meal ah, we bought before the prices we launched basely into it. we traded through it, we scaled out all of our algorithms and membership. some major changes pretty much hit when i call footprint. and we went to a half percent us market share pretty much overnight and i things were going very well. and tom may 2009 when things mysteriously stopped stopped working

we build the system, it would basically measure that the trades that we intended to do were in fact profitable. and that were the trades of the machine should be doing over the period of 2009. and i started seeing on changes. ah, the stock trading that we did change quite a bit over that period of time. and what happened was some i, you know, kind of bought into them. what i think of now is a myth where people say, or that that exchanges toxic. and in the, you know, without, you know, that's just kind of a blanket term. greg, you know, i'm getting screwed on the exchange, that's what being toxic me. so what i, what was happening is i would keep redirecting our trading towards of a exchanges that were bless pox and ah,

and then there were none. so the last exchange to toxic was, was direct edge. ah, i may of 2009. i was out of the, those when you're away from the office and i for week and i came back and there was this traumatic change that was so severe that it basically took a business from modestly profitable to flat. in order to confront the problem. pine bo deck immediately buys foster connections and price fate. he optimize his his coat, but the problems increase. he watches power, leslie, let the blood drains out of his company. facing bankruptcy, hind bow deck encounters at direct age salesman. at a party. he just told me any outlined 3 major abuses he'd got

interested and i remember take out a napkin arrow where we found the pen or something but i, i wish i had this napkin. so i'm, you know, i'm like, what this is, do you mean it works like this? and he explained to me these very, very sophisticated abuses. and i am, he said to me that they built all the stuff to attract high frequency traders, but they hadn't done good enough job. so now they were going to make new high frequency traders. and i was invited in the club to become a new abuser. i it was 20 minutes of work to fix these problems, but i have been chasing for half a year. and this guy could have just told me half a year ago. and the, you know, if he had told me much earlier, i probably wouldn't have crossed my mind how wrong it was. but i was so

angry, it was very clear to me that you either use the cheats or you were a victim. it was designed, there was no middle ground. you could not 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 and his bankruptcy during the turbulence of 2010, and 2011. for the 1st time pine bo deck, 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 a, you know, undocumented special order types and an obscure abs exemption and regulation, and m and m. s. to get to the top of the queue. no, they're gonna tell you they're faster than you. and that was, you know, that's the false flag. let's say or no, no, the right term is better. you know,

the red herring speed is ah airy a red herring for, for a lot 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 that suddenly lifts the veil at 2 32 pm on the 6th of may, 2010. the u. s. financial planning company waddell and reed places a huge buying order for forward contracts valued at $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 letting up share prices immediately begin to collapse. approximately 3500000 shares are affected and

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. that 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 is never fully resolved. the largest flash crash to date happens on the 5th of february, 2018. its impact is felt around the globe and isis besides a misconception about this gift. i am flashed aside fish caught, snuff, isn't flesh crashed quite often. i'm with the blower. walker made it won't dare. hadn't bank money for the thorny forgive off that because after what it was money full year old isn't flesh crash, advice was young doin farmers journey from the

casinos to los alamos, the non to wall street eventually takes him, talks it. but he now studies stability in complex systems like the financial markets. i think part of what happens in flash crashes though we haven't gotten the bottom 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 trading system that literally cares about microseconds. that means you have to write code that's extremely spare your signal. it's your machine, your machine should have most run a few lines of code and then it has to make

a trade. you have to do everything super quick. you can't think about it pretty much. when i say you, i mean the machine kept, 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 would be one thing if we were taking these risks because it came as something that was valuable. doesn't give us anything valuable, just makes a few people rich and the 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 that instantaneous glitches of the other orders hitting the markers. critics of high frequency trading, who spent years in brussels trying to achieve key you wide regulation. the

privatization of markets encouraged by the e used 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 foothold in europe's market regulations pertaining to high frequency trading that were passed by the e u parliament or overturned that the last possible moment by the finance ministers in the council of the european union, but we should give us a form. they are like will yields are financed milk to vinegar out of where to buy toys and fields where thousands even done in kafka and had a short while. i know like when you could gave the done with the keys of buying a title. hatamio domino stock will decide. huffman lists my 2000 to 12 and she wasn't what's what? i was inclined. so these are like with the on the finance knocked her so lately with you on to annoy traditional resilience one. don't see how it goes on the stuff

. oh, florence 101 if you divide as the yes them, if it come up would calm the current the e u. parliament agrees on a holding period of no point. 5 seconds and a cancellation fee designed to restrict high speed trading. this is done above the sex was considered jointly should kleckley shy thought to the meet the truck and happen. hired bush came in twice as big wasn't finance, but a lot of london looks on bush barrett low police reasonable. unfortunately, it wasn't as it is in finance, but it is with doyle and then not happens when i got to the bodies. you want me to ask them if it comes in with some name. well, not really. how much do you for clever the sofa, the expense? hundreds viet didn't feel like we don't just for the supply. and see how does this

mine of often implement v as in i in front of them. so garden city little golden dummy track and wednesday, the enticing dea lobbyist move the soft look runs hondo submitted financed marks legal and plan plan on down with that we could slender and then click on the letter. now do you want me to spend also has i think a tool that is often solutions like one process, yet on the saturday to refute a cod abusing part of the old i'm if it's a locked in 2012 the same year that the you start working on the method to directive. i'm bow deck becomes a whistleblower in the usa. he is met with powerful opposition and the bankruptcy of his company affects him deeply. to me it's not about, you know,

the possessions re and the status symbols to me. it 1st rejected them, 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? be tune your compensation. what they expect your demands are. that's how this business works. it's a, 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 i, the whistle buying was, was an amazing experience, was an think i had been corrupted by the business. and i will tell you why the 1st time i realized that i was was when i had to mow my own won, i live in an airport where people don't mow their own lives. so if you go in out

while you're on line, it's noticed. and i'm, i will say that i'm shedding, that was a liberating but it took a lot longer than i thought it's disturbing how much those symbols of status and wealth become im, essential to people feeling southworth mm hm. most of the retaliation was done through the industry, quietly. i and and you know, it was the kind of a strange mix in that um the people who were

at least supportive where the, where the victims. there 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 embarrass 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, i didn't get the love from, from that side of the fence, but was very strange. as i got a lot of attention from the high frequency traders, especially a high frequency training executives who kept trying to reach me back. i

will say that that the process made me respect the bad guys way more than the rest of the industry. because they were actually right about the risks they were right about the regulatory response. they pushed things to a level where they could manage it and they didn't go beyond it. there was one, i'm a president of a large high frequency trading firm that had multiple percent market share 4 percent market share. and i, he told me says, even if you tell everybody what we're doing, the buy side 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, don't miss a we'll see about that. so year later, i'm at a conference hour. i debated him and, and after the conference i said, you're totally right by push. anyway,

worst over everyone's head. i was like there there is a, i think over 500 pages in the federal registrar of changes and am documentation on features of exchange. it's. it's entire purpose was the level the playing field. and i think the only people who really read it rely, brings the traitors. no kidding, which we call say 15 more. a some boys do own play small. don't thought i machine in machine la. casita got la machine, a book, computer net good on google presented good m la machine that the agular kill sheet . 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 i, what i learned after 20 years is what we ended up doing. so we automated the old

boys club. it's alive, driving. it's in the elbows. ah ah, look forward to brighter skies the winter sponsored by cattle at ways. we had near reco breaking terraces in paris while thursday on fridays. you see the showers, the top blooming and these are significant thunderstorms. we'll put pe to that. i think a sudden, jones, at 31 humid degrees down in a year ago. it's not quite a storage, it has because those stones are moved up into the southeast brazil to coast yet

more flooding. of course, an argentine again, suddenly breezes get temperatures down, showers a band, and those shows are probably become more intense once again in ecuador, remember there was some flooding nikita when that could be repeated. that's the line of intense shells, runs across the northern part of brazil and further north towards french guy north of that though. and we think of the cold air coming out of the us. he's going to be hard to shout in mexico. big sons don't seem likely here. the right has been persistent in his by near that particular dominican republic is moving slowly away . so it will dry up for you. as you know, winter storm is the big thing in the u. s. and throughout friday, huge amounts of snow, but failing. so it's drawing up in the southern appalachians between the snow in the rain, freezing rain, quite lightly. kentucky. maybe part of the higher by saturday will the code is still visible. light in houston, but the sun is out from most people. oh,

the weather is sponsored by cataract ways. americans are increasingly saying authoritarianism might not be so bad. there were several steps along the way where the chain of command, it seemed like tried to cover what's your take on why they've gotten this so wrong . that to me is political malpractice, the bottom line on us politics and policies and the impact on the world on al jazeera february on a disease. china has the winter olympics, will diplomatically comp and the korean to vibrate overshadows the rigorous debate . them unflinching question up front. cut through the headlights to challenge conventional wisdom. out just anyway, keep you up to date as nation typically over kong, buried and made continue. vaccine inequality. 11 east investigates how brexton the pandemic and changing tastes are causing the great british curry, crisis of record levels of unemployment. and the pre even quality costa ricans done

to the po, february on a, just eop, ah, this is al jazeera, ah, hello, i'm about to send. this is the news, our life from doha. coming out of the next 60 minutes, the opening ceremony of the beijing winter olympics is underway, made a diplomatic boycott and a few spectators. ginger pandemic restrictions presenting a united front to russia and china say they oppose further expansion of nato. as president vladimir putin visits beijing.