slightly reaching was fulton investments were active and moving from one city to another, palestine 1920 on al jazeera. ah elegant peter, they'll be here. and oh, how you top stories from al jazeera senior members of the u. s. military have arrived in poland as part of a nato deployment. nearly 3000 more us troops are being sent to the region. nater says it's in response to russia's military build up on the border with ukraine. harlan almon is a military expert and senior advisor at the atlantic council. he believes the u. s . reinforcements will change very little putting his after a new strategic framework in europe that protects russia. and he also wants to prevent further nato expansion. and so those are going to be his long term goals.

and my guess is that he will use force symbolically to persist in negotiations. and if he stands down at the end of february, as he said he would then he's going to have all sorts of diplomatic leverage because he's going to say to the west, you just cried wolf see. now let's talk. now whether the west is prepared for this or not, remains to be seen, but so far potent has the initiative in the west is not doing enough in my mind to take that initiative away from him occupying ukraine would take hundreds of thousands of forces. so what is he going to do? he marches t f. a. how does he get out? now maybe he could want to have a border opening to crimea with some people have argue, but then he still stuck there. and what he's going to do is to ensure that nato, this time is really serious. so as far as i'm concerned, it makes much more sense for him to use these forces symbolically and diplomatically. and then at the end of the day, he probably is going to be gang something in terms of negotiations. of course i

could be wrong in common sense terms. he's got all these forces. why didn't use them? well, there were millions or soviet forces on the border of nato, and under the thousands of nato forces on the border of the soviet union. we didn't go to war. so i think war is probably very unlikely in this particular crisis. and certainly one hopes up thousands of demonstrates as across brazil, law demanding justice for congolese refugee who was beaten to death, the killing of maurice cover gummy as shocked the nation. he was killed at a beach side kiosk in rio de janeiro in an apparent dispute about unpaid wages. the police released footage of him being attacked by 3 men. for 13 minutes cub gummy fled the war and the democratic republic of congo in 2011. this dog president of the brazilian states is racist. it is a nazi state, it is a homophobic and xenophobic state, and it has to stop. but it be a here protesting in solidarity with all the families who have suffered these barbaric crimes that they have been suffering the final day of the african union.

and some it is taking place on sunday. concerns have been raised about 6 military coups on the continent. in the last 18 months, the union is also under pressure to push for a ceasefire in if the o, p is northern region of to grow our commitment to pursuing lasting and durable base in our currently shouting main city. fast excellence is listen gentlemen. the greatest listen that ethiopia has learned or the past year is out with those the philadelphia of africa, brothers and sisters. our existence as an issue would have been at great risk chin as he has precedence dissolving the supreme judicial council, the body that overseas, the independence of judges. president case said, said the council was outdated, said hastily to criticize judges. recently he dismissed the government and he suspended the parliament last july. the united nations secretary general antonio

terrace. as asked the chinese president changing ping to allow access to the region of sin. john, they met during a sideline conference of the paging winter olympics. mister terrace wants the human rights chief michelle bachelor to investigate abuses against the muslim week, a minority a 5 year old child who was trapped in a well in morocco. since tuesday has died, the moroccan king and i ran didn't survive the 5 day ordeal. rescue had dug out part of a hillside to be able to reach the boy. the bollywood singing brought up my jessica, known as the nightingale of india, and the queen of melody has died at the age of 92. she sang more than 30000 songs in 36 languages. she lost her life to complications from cove it 19. those are your headlines up next money bought small news and 25 will see that ah

ah, the 5th of february, 2018. at 3 pm local time, the dow jones plummets as though 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. a new york is not alone. the collapse spreads like wildfire to frankfort, sidney, tokyo panic. he wraps. 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 yester nomic acceleration of computer systems, could almost cause a world wide financial crisis in berlin? guess how chick campaigns for 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 if man be us to live was in music, couldn't antarctica 100. hm. does any of the other trotted out to a 1000? once he runs it was i like the unit vine. he didn't deter 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. 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 chairs 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, his own 6000 dollars within a few milliseconds, and with no attached risk ah, i frequency trade as do not have to be active in the markets permanently. their advantage is most effective when crises, disasters, or political decisions cost strong price fluctuations. essentially, high frequency trade has benefit from crises and a constantly waiting for the next one to occur. in the beginning,

the intention was to use greater predictability and foster 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 hat. ah hm. i had a book you were trading engine was running in frankfurt remotely, by it was being controlled from london. ah, what happened in this particular case is in internet related outage caused us to lose control over the engine that was in frankfort. and i remember for a couple hours she,

i try and to validate that the engine self wiz. i'm demobilized ah, 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 a parameter and it was off. i had this engine, it was basically a trade in a could a lost, you know, could was $30000000.00 rate. it lost a few $100000.00. but it was, i was a terrifying experience. i'm bo derek is a trader and come

a software developer in stanford, connecticut. i'm boat ag 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 bolduc a 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 thorpe and blair, how develop algorithms that allow them to count cards when playing blackjack. and to make predictions doin pharma takes a different approach. in the 1970s, the physicist makes roulette his field of expertise. farmer and his team begin to play, or they soon discover that it's possible to predict the course 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 like 176 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. i sampler edema father in feeble said feeble, our own toilet data center ever it up for me to allow he just kinda had you one moment that had you already load law firm as your e. could the don the senior had yuki solve? were ye just k no, couture, c, horseshoe law is separated the maneuver an energy sac. yeah. or can't hide smoke effect it? don't say repetitious killer pushing to, or if with absolutely more afy to little lashanda who i've well, i'm sure so the gather snell. pope dupree chicago risk of new jersey. she or meals

just wanted. i met her. so i was one to fail or counteract model she. is he empty, pu, come laska yan course of for me. now on, do i sorry to was donna eluted that he was told that is who was this? you don't i call so don't know. look, don't that he will stand to look a sasha at her. they 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 slower. this begins to change in the mid 19 seventy's

and the 6502 microprocessor had just come out same microprocessor that 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 a 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 past 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 in place to happen. so we had to have the prediction coming pretty fast. a 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 shoe. farmer himself becomes an icon for people working in the field of computer base predictions. farmer and his team eventually decide that the 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 data, or canton, bill harley to find out what's happening along the way. one word to describe was happening in that is doug jones. industrial average is almost $200.00 points. it is down by a $191.00. every now. 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 more now right now in 1975 when, 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 dixon. in the early 19 nineties, the company is considered a measuring stick by many traders like doin, farmer 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 bow deck joins holstein in september of 1997. quantitative analysts are also in high demand in europe, the best emerge from the universities in paris, mathematician so welcome additions to the market. as our physicists like steph, antique, allie parker, sherwood street. totally. nobody on bush additionally shell. he don't. jason medea measure of the found the shows, or, of course sir,

it had been p. allie parker shade, elmore on bush. it, if he can, i don't. his really windy shows. q g, a piece of the crafter, secure. li, metty, metal penal shayla. vive don't you know of a d is this mr. dot? if he is the catch you lucky shortest if he are making shock and is active, he's the controller. he said damper he did the clearly any type of it, not yet, but the question larosa yes. on his up what she marshall did good. i bosa me. say, come m under. shall kayla been people? he bow a plan. go to a bunker a key fondly did he thee on betty ah inactivity to much of it. premier though salmon sitina is hidden, that if he's here of her food whiskey decay, but i have had a t me t. she's a morgan of her. she po, process how he are

a multi days activity, the project media, the of nipple. 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. so we went up to lab and we looked at the simulation on the ela computer and we were just amazed cuz you could see that 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 are, we created algorithms for finding identifying patterns in nature that are described by chaotic dynamics. i'm doin huh. devote 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 would talk about this, somebody would say why you play the stock market. and so i kind of hard saying no mm me. while i heard about the efficient market hypothesis, which says that stock market, sorry, inherently unpredictable. those are 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

a company to use computers to protect the stock market. this was in 1991 and called herself critical. mm. ah. those are those above if any one. yeah. i think most 3, how do you so much? not a lisa my like are they? yeah. they're homeless. he found his id not to have on the fund. is any get her say taylor court that she wants to still continue to family. got, you know, like the 3rd tech counter in math. not in yet feel real or to come feel reacted. also. lab rosser, very one hour to day. buffy alamba on a born you the long on about him? done the paris 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 restructure the sky shifts my biggest infection behaved, is that asian st on an, an impact looking bonham by international garden i've gotten so close to young on these are a few more community of interests of yours in the men optima. awesome. awesome. so that has to be of been channels and found that on to me, man, meet the man that one off tomorrow. you're ikishia. if the articles of time he's of

the essence as a gift minister dash be beneficial to get all the luck the instead this he comp nav arkenberg to can millisecond on does his feel ownership, whitaker shaped more believable on gaming. is him so finance this less 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 went electronic 1st and the 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 a, you know, basically a cheat to exploit. ah, i 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 the 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 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 hadn't acquainted the 2 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 prediction of 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 bats based on the patterns. we learned some lessons from left. one lesson was that you've got of that big

the stock market also to make a good model. you don't have to pretty very 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 your kneecaps, 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, that worked very well. and so production company traded subsequently for about 25 years. we ended up selling it to you the us in 2006 rodder it took to al jazeera oh wild alarming. if we

listen, design is, are making serious efforts in order to impede and to stop the turn, the windows it, we meet with global news meetings and talk about the stormy stone mountain analyses for quite a few decades. casa, has been dealing with political and economic turmoil. and its people struggle to access essential needs, like adequate quantities of possible water, a sufficient number of beds for pregnant mothers, and limited access to up to date information for students. and in the ha, the ground water is not sufficient to meet the daily needs of all of its residents . this led to the development of the new water treatment facility and han eunice slowing down further pollution. the extension of, as if, as medical facilities was accomplished to provide expectant mothers with a safe and reliable opportunity to get the care they needed. the kuwait library at

the university college of science and technology is not only a repository of knowledge but an access point to the world beyond. lou again, peter, they'll be here and oh, how the top stories on al jazeera senior members of the u. s. military have arrived in poland as part of a nato deployment. nearly 3000 more american soldiers are being sent to the region later says it's a response to russia's military buildup on the border with ukraine. thousands of demonstrators across brazil, a demanding justice for congress. refugee who was beaten to death, louise cover gummy was killed in a beach side kiosk in rio de janeiro in an apparent dispute for the unpaid wages. as well as the brazilian stacy's racist it is a nazi state. it is

a homophobic and xenophobic state and it has to stop but it to be a he protesting in solidarity with all the families who have suffered these barbaric crimes. they have been suffering hundreds of protest as had been rallying in the u. s. city of minneapolis, after a 22 year old black man was killed by the police army, a lock was shot dead in his apartment on wednesday, after officers used to so called no knock search warrant tv footage shows police entering without warning while he was asleep before he then reached for a firearm chin as he is president, is dissolving the supreme judicial council that's responsible for the independence of the judiciary. president case said says the counsel is outdated. the final day of the african union summit is taking place on sunday. concerns have been raised about 6 military coups on the continent in the last 18 months. the union is also under pressure to push for a ceasefire in ethiopia, the northern region of to grime. the un secretary general antonio terrace has asked

the chinese president, she ging ping to allow access to the richness and young. they met during a sideline conference at the paging winter olympic games a 5 year old boy who was trapped in a well in morocco since tuesday. has died despite a huge rescue operation that captured global attention. king mohammed called the boy's parents to offer his condolences. the bollywood legend known as the nightingale of india and the queen of melody has passed away at the age of 92 latter, my jessica was renowned for being the voice. bollywood stars lip sync to on camera . she recorded thousands of songs in a career spanning more than 70 years. she'd been in hospital with complications from cupboard 19 since january. those are your headlines. adrian has more news from 7 g between now and then. money bots are season by ah, 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're 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 you've 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 of former whole trading company employees leave. goldman sachs in 2003 bodeo 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 africa, she 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 the so interesting is 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 all then tracy nausea to live for keyson, the media. if this you heard his best is lima viani jackie say for the higher ed took a box companion of kindly thought her felicity qual, federal versus was he not? i had placed jen? hi lisa, i guess it got it from. i see that he got his get was them not he actually had molested sale left on off at the office by looks at more and on the mean. yes, it mixed up and get cookie and i the whole thing off yet. can you? is it more for me all been is she said aloud, scarce insect a laser dog level, or did he say sorry, mushy. asthma, mo, nadar pick the, well, it is all on there, there the money or her, if minister myself that 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. okay, i won't go into details, but it happened on 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 us option market to the brink of like collapse

basically. and 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 trade machines reserve ah, 2007. it was designed to be you know, a ferrari for an independent for ari to me or for me or was really a dream as 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 or sap hoshevely because delineate when you're chaudry. ah, or v all demi was gone or should left desert, eddie myo ah we bought right before the financial crisis. we launched beasley 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 was we're going very well. and tom may 2009 when things mysteriously stopped stopped working.

we built wood 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 and 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, 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 less toxic. 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 the business from modestly profitable to flat. in order to confront the problem. pine bo deck immediately buys foster connections and price fate. he optimized 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 i got

interested and i remember take out a napkin arrow where we found the pan 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'm, he said to me that they built all the stuff to attract high frequency traders. but they hadn't done an 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 had 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 design, 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 201-2011. for the 1st time pine bo deck, he's forced to confront the realities. the 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 a mass to get to the top of the q. 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 don't know, the right term is better, you know,

the red herring speed is ah airy a red herring for, 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 4 point. $1000000000.00 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 stock 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. isis besides, chances are our escaped. i am at ashton thought. fish courts laughed. isn't flashed, crushed, quite often. i'm with the blower. the watermelon won't dare, hadn't bank money. latonya forgive off that because after wooded with money will yet empties and flesh crash of ice ocean doin

farmers journey from the casinos to los alamos, known to wall street eventually takes him talk, said what he now study 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. if you're a signal, it's your machine, your machine can at 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, their trade on that instantaneous glitches of the other orders hitting the market. critics of high frequency trading, who spent years in brussels trying to achieve he,

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 counsellor. the european union, but we should king us why not before they are equal younger financed milk to vinegar out of we are 2000 fields where thousands even done in kafka and the shorter. well, i know like what you could gave him the guns with the keys of buying a title. hatamio domino, stock will discipline which to my 1000 to it's worth and she's in sweaters and what's, what else and quite soon do you think will the on the financed knocked her so lately with you on to annoy traditional resumes for that scene out because on the

stuff that murder, awfully crunch 100 and the warning you divide as the yes them if it come up would convert, couldn't 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 doyle issue kleckley shy thought to the with beach happened hired which gave us twice as big wasn't finance, but a lot of london looks on bush barrett know police, regional unfortunately wasn't as in finance, police were doin and then what 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 twitter, the sofa reflect fence, hundreds to viet gate and he's like, we don't was for the supply and see how does this mine of often implement the isn't

i in front of them. so girl sitting little golden dummy transition on the enticing lobbyist moved the soft look runs hondo smith and financed marks legal and plan a plan on down with you that we could spend on platen click on the electric. now do you want me to spend also has i think a tool that is often social, mental one plus yet on does that are not to refute a candid deezen part of the old i'm if it's 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 has met with powerful opposition and the bankruptcy of his company affects him deeply. to me it's not about you know,

the possessions ray and the sad assembles 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 air behead where people don't mow their own lives. so if you go it out

while you're on line, it's noticed. and i'm, i will say that shedding, that was a liberating but it took a lot longer than i thought it's disturbing how much those symbols of status of 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 i am the people who were

at least supportive where the were the victims. it was 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 site 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 sent over, so we'll see about that. so a year later, i'm at a conference where i debated him. and after the conference, i said, you're totally right by push. anyway,

course over everyone's head. i was like, there there is i, i think over 500 pages in the federal registrar of changes and am documentation on features of exchanges. its entire purpose was to level the playing field. and i think the only people who really read it rely, brings the traitors. no kidding or trico, say 15 more. a some boys do own place small. don't thought i mesheena in missouri. la casita got la machine, a book computer net could on google presented good um la machine that the hagler kill she 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

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with al jazeera, select change makers. ah hello, there will have a look at the weather across the middle east in a moment, but 1st to africa and all eyes are on cycling, bat sariah as it moves its way across central madagascar. now if we take a closer look at this storm, it's a very powerful system. it's working its way towards the south west bringing some pretty damaging conditions. we're expecting wind gusts of up to 250 kilometers per hour. we could see rain totals about half a meter falling in places, so that's going to be widespread flooding. and of course, huge waves from the storm surge. we are expecting significant damage. now, by the time we get to monday, it's going to skirt its way further. south, curling round is not expected to move close to mozambique or south africa as we had

previously seen, but it still remains a rather wet picture for much of southern africa with some heavy fall for places like zambia as well as tanza nia. now further north, it's a different story, it's very hot and dry. for large areas here we got the hom, matt and winds continuing to kick up. that's the horrid dust blow it to the atlantic. now as we move to the middle east, it's rather settled picture up in the north. gotcha. now when that's going to intensify over the gulf and we'll see the temperature dip down in dough hot in the days to come. ah, the gonna resume conservation post office director both bringing nature and people together to work with what life is my pleasure. my talk is leaking between the clock on unity in the african american to find a club. what do we have to pretend? i have to teach the community that living with the wife lives. it's 6 las

limbo riding with las mice and bob way on al jazeera. ah, more us troops arrived to pull some nasal forces in poland, a bit to count russia's growing military presence along the ukraine. bella luce, florida. ah, hello, i'm adrian. this is al jazeera alive from dough, also coming out of the days of friends, it digging a tragic end for a 5 year old boy trapped in a moral well weeks of gridlock in canada as.