silence from his allies is deafening. the u. s. was perfectly happy to trade off the mark for see for security. why are western leaders turning a blind eye when even their own citizens have fallen victim to his repression? executions, torture censorship is not acceptable. and you won't hear such strong words from, let's say berlin or paris, or london man in cairo on al jazeera. ah, i'm in wrong conn and go ha, the top stories on out 0. european leaders are making a diplomatic push to stop a military conflict between ukraine and russia. french president emanuel macro met the country's leaders this week. the u. k. foreign secretary list trust is visiting moscow for talks, whilst a prime minister, boris johnson is in warsaw in brussels. meanwhile, the u. s. is accusing rush of escalating tensions by planning more military

exercise in belarus. russia says it's training to repel any attacks on its board is old that of bella. luce? natasha butler is following developments from kia, where the ukranian foreign minister said his country won't accept any ultimatums to diffused attention with russia. dmitri labor or giving a press conference in kiev. and he went over a couple of points. really. he said, 1st of all, in terms of the situation along caves along ukraine's border, he said that it was calm. it was quiet despite the built out of a russian troops there. and that i caused some of the comments he made earlier today in which he said, look, the situation is still very tense, but it is under control. he said he also welcomed a recent diplomatic efforts by various a western leaders. he said that those efforts had really helped to or reduce tensions that helped to ease tensions. and that the a president zalinski had also welcomed them. he talked about the french president

emmanuel mcgraw, who met with the russian leader vladimir putin in moscow on monday. and also with the ukranian present in kiev on tuesday, or he said the macro had put no pressure on a ukraine, had not come with any proposals, but it only come with opinions, particularly when it comes to a efforts by ukrainian and rochelle senior advisors to try and revive the piece process for the east of ukraine, that those are the so called minsk agreements. they are a talks that are being mediated by france, by germany. something that emanuel mark raw has said is very important. indeed, he sees that as a possible way to try and diffuse a tensions of ukraine. perhaps a possible solution to the crisis. current is permanent, says, says a truck is blocking a vital border. crossing with the u. s. or a threat to the economy. automakers,

ford and harry to say the interruption is hurting production of their facilities in canada. the so called freedom convoy, once vaccine requirements, and other coven 19 restrictions scrapped? yes, yes, it's next f bagley les factually tis up this see, age is unacceptable. the impacts on small businesses on manufacturers, on the supply chain, an ongoing, whether it be barricades at the border or sieges in ottawa, we must do everything we can at every level of government to end it when it's going on. what would really help is if the conservative party could tell it supporters to stop blocking our economy and go home. on the 120 new zealanders have been arrested in a similar protest outside the parliament building. and wellington, there are concerns the demonstration which began on tuesday could go on for days more than a 1000 people are gathered to denounce requirements that certain workers get jumped that excited. foreign tourists can over the philippines for the 1st time in nearly 2 years. the easing of restrictions comes months later than planned after concerns

over the army con variant. south korea's president is calling for summit between u. s. president joe biden, and north korea's kim jong and mary jane expressed concern that north korea could resume nuclear and long range missile testing, which he says would cause an instant crisis. and there's been an attack on the convoy a lobby as in trim prime minister in the capital. tripoli, abdul. hamid de baber was returning home when his car was fired upon. but he escaped. unhurt. incident becomes a day before the house of representatives is due to meet a new prime minister russian media reporting olympic skater, camilla vajella, tested positive for a band heart medication before leaving for beijing. olympic officials delayed presenting the 15 year old and had teammates a gold medal for their when the drug is banned by the world anti doping agency. those are the headlines and use continues here on out 0 after money bowls and keep

up on out. is there a dot com 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 stocks lost so much in a single day. a new york is not alone. the collapse spreads like wildfire to frankfurt, 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 yesterday, nomic acceleration of computer systems could almost cause a world wide financial crisis in berlin, gerhard chic campaign for more transparency in the financial sector than the one on the store for grants 100 for your average of chevy as this one is not the same as or us headless by the human be us to live was in music, couldn't antarctica, 100 words? am, doesn't he go for the other trotted out to a 1000. once he runs across, i'm used to using zine he deal and he 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 chairs with all the other exchanges faster than the pension fund cap. 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 markets permanently. their advantage is most effective when crises, disasters, or political decisions cost strong price fluctuations.

essentially high frequency traitors benefit from crises and are constantly waiting for the next one to occur. in the beginning, the intention was to use greater predictability and faster infrastructure to increase the stability of financial market. 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 boy, you know, 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 live i had actually designed a 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 that was basically a trade in it could a lost, you know, could last $30000000.00. right. it lost a few $100000.00, but it was, i was a terrifying experience. i'm bo dick is a trader and come

a software developer in stanford, connecticut. i'm boat egg 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 mccabe, 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, boon egg 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 black jack and to make predictions doin farmer 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. and 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 is also considered more. i sampler edema, bava in feeble said feeble. our own toilet data center it up for me to allow he just kinda had you mama law had you 80 low law firm as your e. could the don the senior had your keys all were ye risque know to see her. sheila is separated magneer and allergy sac. yeah. or can't hide smoky face. it don't say repetitious. can i push it to? are you for it? absolutely more puffy to live on lashanda who i've run show. so the gather snell.

pope depreciate, care go risk when you're jealousy. she or mildew ashanti domain. huh. so i was one to fail or counteract. modest she is he empty, pu, come laska yan, cause the for me now or do i sorry to was donna ill told that he was told that is who ask you this. you don't i course i don't know. look, don't that he will stand to look a sasha at her. they are leaky more i'd use you into an algorithm is a rule for answering questions. algorithms provide the foundation for farmers bet, said the casino. oh lou 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 lay batteries under the other armpit switches and the shoes wires running up and down an antenna around the shoulders. the antenna would transmit the signal to a 2nd person who had been placed the baths. from the moment the croupier spends 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 vents 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 shoot. farmer himself becomes an icon for people working in the field of computer based predictions. farmer and his team eventually decide that the winnings at the

roulette wheel do not justify the risks they are taking. ah, they return 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 desk, and they are canton bill harley. i lost only one word to describe was happening in that is jones industrial average is almost $200.00 points. it is down by a $191.00. had 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 more. now right now in 1975 point,

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 1990 is 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 of 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 emerged from the universities in paris, mathematician so welcome additions to the market. as our physicists like steph, antique, allie parker, sherwood, st. totally, wrongfully on bush edition shell. he don't,

j seed in the deal measure of the felon. melissa of hosa. it had been p. allie parker shade, elmore on bush it, if he handled his really windy shoes. q g a p, a decrease. after secure li, metty metal penal shayla. vive don's, you know of a d is his base, the data if he's there, cal toola, kiki shortest if he are making sure con does occupy the computer. he said dumper, he did the korea lately. any type of it more yet, but the question lego, so unique on his up what she marshall did. good. i bosa me. see, come m under. shall kayla benefit barry bar a plan. go to a bunker, a key from the davy on betty ah. inactivity she much of a club you looks al moon sitina is had done that if he said he had half were full

whisky, they keep on out of harry t me t she's ambien apple. she po process. he are a multi days activity. the project media though of new bell while we were doing a roulette project, our friend rob shaw came over and said, i just found out about this amazing thing. chaos. so we went up to lab and we looked at the simulation the ala 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 comment, 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 will talk about this, somebody would say, well, have you play the stock market? and so i kind of tart saying no me while i heard about the efficient market hypothesis, which says the stock market, sorry, inherently unpredictable, was a very popular theory at the time. and 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 break the stock market. this was in 1991 and when called herself production company. now those those, if the heat of a boy, yeah, i think was 3. how the re so much, not a little more like all of a year to homeless. he found his alternator. they'll refund, isn't it? say taylor got that she wants to still continue to if i move. gotcha, no, no, no. the 3rd tech count them in math, nor in your feel or to come feel reacted. also. lab rosser very when the hour to day buffy you along on a ball 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. we secure the ski shifts more vegas infection. bit saved is the state and sent him an, an impact norton bond from the internet sign button. i've gotten so close to you on these are a few more community of interests reviewers in their men optimize. awesome,

awesome. so let's as to here for been with urinals and standard on to me, man. meet the man that one off the mark. eureka shift out frequency. time is of the essence. as a gift many characters we've any wish to get all of the love instead this a comp nav arkenberg to him millisecond on does his fear on the should we figure shapes or belittle on gaming? is him so financed is 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 sole. and its traditional companies such as i b, m and general motors on the electronic stock exchange. nasdaq mm hm. the 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 then 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 fax 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 founded 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 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, 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 rodder. it took 2, i'll just say,

oh, are you a while to warm? is good. we listen, a zionist, are making serious efforts in order to impede and to stop, to turn the legos, if we meet with global news maintenance, i'm talking 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 potable water, a sufficient number of beds for pregnant mothers, and limited access to up to date information for students. and in the hasa, 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 hun 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. oh, i'm wrong gone into all the top stories on al jazeera. your pain leaders are making a diplomatic push to stop a military conflict between ukraine and russia. french president emanuel macro met at the country's leaders this week. the u. k. foreign secretary list trust is visiting moscow for talks. while prime minister boris johnson will be in warsaw and brussels. meanwhile, the u. s. is accusing russia of escalating tension by planning more military

exercise in belarus. russia says, is training to repel any attacks on its board as well. that of beller bruce and south korea's president is calling for summit between us president joe biden. and north korea's came junk and moon j. n. expressed concern that north korea could resume nuclear and long range missile testing, which he says it would cause an instant crisis. and russian media are reporting that olympic scatter, camilla vajella valley ava tested positive for a hot medication before leaving for beijing. olympic officials delayed presenting the 15 year old and had he made a gold medal for that when it's the same drug that prompted the ban of the russian bolts. the team in 2018 and there's been an attack on the convoy of libya's in trim prime minister in the capital tripoli. abdul hamid debate was returning home when his car was fired upon. but he escaped unhurt. and canada's prime minister says it

says truck is blocking a vital border crossing with the u. s. a threat to the economy. the so called freedom convoy, once vaccine requirements and other coven 19 restrictions scrapped? yes, yes, it, it's an acceptable lay, factually tis up like this. siege is unacceptable. the impacts on small businesses on manufacturers on the supply chain are ongoing. whether it be barricades at the border or sieges in ottawa, we must do everything we can at every level of government to end at least fill up. what would really help is if the conservative party could tell it supporters to stop blocking our economy and go home on the 120 new zealanders of been arrested in a similar protest outside the parliament building in wellington, there are concerns the dinner. the demonstration could go on for days. and vaccination foreign taurus canal was at the philippines from nearly the for the 1st time in nearly 2 years. the easing of restrictions comes months later than planned . over concerns of the omni ami con,

varied bows of the headlines. the news continues, hey, on out 0. mm hm. 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 buys the whole trading company for half a $1000000000.00. hall was supposed to be become like the backbone of the, of, of gorman and really dinner in it really was a very, very different culture goldman and i hall 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 beaudet joins u. b. s, which is planning to open a new trading flaw in stanford. he is tasked with creating the infrastructure from the ground up. i remember the 1st time i heard about high 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 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. the financial journalist jennifer niel kept a close eye on developments from the very beginning of yashira, and he thought you might then twisty nausea to live for keyson. they media su hershey spaces when im a bianca say for the hire. i took a bunch of combat. you know kind of doors her, does it the graph that more assess was he lost the hapless jenny haile? i guess it got it from i see that he got his get which was them. nice. yeah. unless it's, if all the help that they're going off at on alpha i look that more at on the mean, it's a civic that they get. okay. and i the hosting us yet. yeah. again. yeah. he's still here martha may have been if she had any luck. i guess insect of lay that dog level or did he say sorry, marcy asked my mom the darn big. oh well let's get this all day after the man.

yeah. if i need them myself, ms. beth there for you knocking off while the explosion of high frequency trading in the early 2 thousands continues. heim 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 didn't want to trade the 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, we're 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 wanted, 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 is coming, it was as stupid as you can get. it was, it was a 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 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 to intrude the same algorithm. and it took 3 years for 7 firms to figure it up. 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 train machines. so sir, ah, 2007, it was sir. designed to be, you know, a ferrari. but an independent for ari to me or you know, for me were, was really

a dream is to be independent. and 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 trade us. 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 shaft horse, she'd levy does the year when you're georgie. ah, or v all demi was gone old should left desert eddie meal we bought before the prices. 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 things were going

very well until may 2009. when things mysteriously stopped up working we built a 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 and changes the soc 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 exchange is toxic. and in, and, 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, in toxic me. so what i,

what was happening is i would keep redirecting our trading towards with a changes that were less toxic. ah, and then there were none. so over the last exchange i took a toxic which was direct edge in i may of 2009. i was out of the, i was 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. i'm bo deck immediately buys foster connections and price fate. he optimize his his codes, but the problems increase. he watches power, leslie, as the blood drains out of his company, facing bankruptcy. hind though deck and count is a direct edge 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 um, 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. 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 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 201-2011. for the 1st time hind though, dec, 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 m. s to get to the top of the q. no,

they're going to tell you they're faster than you and that was, you know, that's a 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 of tricks that my industry has developed to get ahead of other peoples 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 232 p. m. 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 detroit, and his kansas ha ha is gifts i'm for ashton thought fish courts laughed. isn't flashed, crushed, quite often. and with the blower, the watermelon won't dare,

hadn't bank money for the thorny fog of off that because after what it was, money will yet empties and flesh crash. have i so sure 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. ah, your signal, it's your machine, your machine should 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 as 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. it 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 of change and writing algorithms, their trade on that instantaneous glitches of the other orders hitting market.

critics of high frequency trading have 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 markets. 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 by then we should king or so i know before they are like will you financed milk to vinegar? yeah, of we are to right wasn't fear. it's where thousands even done in kafka tweet and had a short while. i know like when you gave her the don'ts with a keys of buying a title, hatamio domino, stock will decide. huffman lists my 2002. so if and she,

that's what happens. what's, what else invites him? do you think? would you want to finance knocked her so lately with you on to i lauren or traditional resumes for that scene? i had goes on the stephanie oh, florence 101 english view devices. 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 with the wish getting in touch with doesn't the wasn't financed. that's a lot of london looks on bush barrett, the police regional qualifying for treating as it is and who knows what it is we're doing than than not happens when i got to the bodies you won't be without. yes. mm hm. if it comes in with some name,

not really. how much do you for twitter, the sofa, the expense, hundreds viet gate and usually could you just for the supply and see how does this mine of often implement the isn't i in front of them. so got it. sitting little golden dummy shotguns, if you don't be enticing there, lobby is smooth, the softly runs hundreds smitten financed marks legal and plan a plan on the case if you could send out a letter now did you want me to spend also has i think it's all that is often situations like one process yet on a saturday, a candid deezen pot belly will be all done if it's blocked in 2012 the same year that the you starts 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 ray and the sad assembles to me 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 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 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 online, 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 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 ah 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 white investment bank once we had made 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 so don't miss. so we'll see about that. so

year later, i'm at a conference where i debated him and, and after the conference i said, you're totally right by push appear anywhere 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 the level playing field. and i think the only people who really read it rely, brings the traitors. no kidding or tweak i'll say 50 more. a some boys do own place small. don't thought i machine them in mushroom la casita. go la machine, a book a presume that could em confusion. it could only la machine that the hagler kill shriek. so when i got into this business, i thought the whole point was to replace the old boys club and to get rid of it.

and i, what i learned after 20 years is what we ended up doing that we automated the old boys club. it's alive. it's driving, it's in now goes there's a wave of sentiment around the world. people actually want accountability from the people who are running their countries, and i think often people's voice is not heard because it's not part of the mainstream news worship. obviously we cover the big stories and report on the big events going on, but we'll say will tell a stories of people who generally don't have a voice. i'm in one of the charm. my, that's me. never be afraid to put your hand and ask a question. and i think that's what obviously we're really done. we ask the questions to people who should be accountable. and also we get people to give their views of what's going on. ah,

it seems every few days as a storm system, nissan med, that runs across the levant to walls. iran will. this is the latest one is dying out on thursday, but it's still active enough to bring strong winds and probably res dustin. no major showers all the way from the far north, up towards syria, still snow up in the caucasus, and eastern turkey and west in iran. the shouts of rain triggering probably a few thunderstorms in this part. nosy isn't passive. saudi arabia nothing to the south. that in fact, is quite worn to heart. $24.00 and in viet at $27.00. and the sun returns to most of syria and places to the west during friday night, madagascar, as you know, has a pretty vicious weather recently. that's all gone now, that was in the south, but it is still the wet season is more rain in the north. it could be flooding from that. it's seasonal rain so you can follow it through southern africa through malawi, through zombie dansby. okay, of anger down to, well, when took and beyond, not quite the skeleton coast,

but certainly sudden angola and namibia looked fairly wet. and in contrast, what was a very wit situation in most of south africa is much dryer than it was kate time is not particularly won't the bone but in the fall cross it hits it a significant warming. ah. in iran, the head of a mental health hospital experiments with a bone new treatment therapy. the power of love, the prescription re men against all on his patients, embrace the matcher manual remedy. but can wedlock lead to better well being on his board? the marriage project witness on out his era. this tom, mum flying the flag for her nation. we have been putting, i'm getting too busy and playing crickets on rugby ha,

country between ring maximum my dream playing in the wood while providing pot family cries in bible is winning games. that's my super precious moran gay in the game. my zimbabwe on al jazeera ah, russia begins joint military drills with bowers, while the u. k. foreign secretary visits moscow in the latest and diplomatic effort to ease the ukraine crisis. ah, hello, i'm emily anguish this is al jazeera live from doha. coming up. i'm john 100 on the

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