i. every day billions of shares are traded in the stock market all of the activity depends on knowing the prices at the moment you buy or sell so how does the information get out there and has it always been reliable today we're going to take a look into the fine print of stop quoting in the early one thousand nine hundred of the only way to receive prices was either word of mouth or handwritten messages since the useful life span of one stock quote was brief quotes didn't travel far outside of new york city now after the civil war the invention of the stock ticker revolutionized wall street and tracking became excessive wall to a wider geographic audience this allowed the people across the us to access near real time stock prices and the trade on exchanges by the late one thousand nine

hundred concerts over control on vital market data amounted western union it dominated the the market for quotation and financial news services and some were concerned that western union would use their access to the data to help insiders manipulate the markets and a report to the house judiciary committee and eight hundred seventy five representative benjamin butler advocated the nationalization of telegraph services warning that there is no industry no interchange of commodity and no value that is not at its mercy however in eight hundred ninety s. we saw the end of western union's dominance in the quote market the new york stock exchange commonly referred to as an icy secured control of the commercial telegram company and renamed it the new york quotation company it became the exclusive ticker service on wall street reporting stock prices remain increasingly difficult over the next century often the same company stock appeared on different exchanges and at different prices now congress wrecking the. is the need for an accurate

quote system so in one nine hundred seventy five the securities and exchange commission was asked to help set up an oversee and nationalize market system with centralized quote as part of the national market system the national best bed or offer also known as and which created the rules require brokers to guarantee customers the best available price when they buy or sell securities for example if you place an order for stock as was the end the national stock network but the best price for that stock was on the boston stock exchange the national stock network would route your order to the boston stock exchange so having this information of today and in real time is very important while it becomes a challenge when the market is extremely volatile there's times when quotes can't keep up with change it changes and price it in the minutes following the two thousand and ten flash crash and the video feed would at times lag real changes by as much as twenty four seconds which is a lot of time considering stocks can be traded in thousands and even millions of

a second then the video is calculated by the consolidated tape association this is the central agency that collects all the trades as quotes from the exchanges and reports which are the numbers you see when you're looking at the ticker on times square now the security and history automation corporation. is the operator of the consolidated tape and in two thousand and six nice he took over a sigh ack and in a merger with your own meaning that night see your own x. i was the sole owner of the firm that provided security codes so once again nice the. new york stock exchange company has regained exclusive ownership of the rights of the wall street ticker which brings us to a full circle or things began over a century ago and that's what's in the fine print of stop quoting.

senator ted kaufman spent part of his time in congress warning about high frequency trading. high frequency trading firms are currently locked locked in a technological orange raise them a result in some big disasters. and the dentally he made this warning just a few months before the crash in two thousand and ten producer bob english and i have a chance earlier today to speak with eric's got him sader is the founder of man x. i first asked him if he agreed with senator kaufman characterization of the competition between exchanges and h.s.t. firms as an arms race meaning that the two are continually having to of the ante in terms of bandwidth and speed and here is his response. there's not really.

exchanges. trading there kind of. relationship. the arms race going. is kind of it's almost like a gentleman's agreement. to. was speed limit and not spend some of the death and we kind of see this because every time the nicely does a capacity upgrade h.f. two firms kind of spike the capacity low and they just kind of push up against a glass ceiling but do they sometimes break it does that ever happen now well when they hit the top keep what happens is everything gets to lead. whatever symbols are processed on that same on the same computer so computers will process certain stocks and you know what they are out of the first letter of the star symbol is

one of those symbols so what they are as a whole group and is this something that happened was this a precursor to the flash crash itself and has this happened recently. in that what then is what was unique about the flash crash e.q. look at all the other points of information and what really stood out as the need of the day was the message it's. the p.c. can stay at the p.c. the last time we had a similar century of information wasn't sometimes we were ninety thousand in a cheeriest and now from that day the dow jones dropped five hundred points about ten minutes in the current. so it was important for information not to get too late if this is seen as there's all these machines are basing their intelligence of what to do on crisis and prices. curves in garbage out. something wrong with it immediately pull out all the meat we want in the plants

have been i don't allow that settled as soon as we had it was the way it is on the say it's lost a whole group of liquid and we saw that kind of recently too when the twitter a.p. feed fiasco happened a couple weeks ago all this liquidity that was supposed to be there just vanished in an instant. yes. stalinists truly finding her since i've been doing this and i started back in ninety six and never see him could he disappear that fast and that great of magnitude it was something to behold but we thought that one of the results of effort quote stopping can you explain what the broader effects are on the market and on individual stocks are of course stepping. right so we have the attitude to look at major firms trade natural trade data already dear world we see sadly a lot of it takes to work in order and then different stages of the order and what

we found is when there are message rates are high the smart order out of time in the credit a lot of crime on wall street will get behind hundreds of milliseconds it's pretty surprising that it doesn't take really that high of quote really to cause this more . time and are these are the smart border routers that you're talking about are these just are they trying to break up large trades for large institutional traders or they have to firms themselves can you can you comment on exactly what their strategy that the ones that we're looking at today are they as institutional who are trying to buy size in bad. back and before rating to mess with you know all of them whether it's a loose changes on the liquidity was concentrated in one place so you can buy or sell the house and shares readily with the market knew it was there now we've got a dozen exchanges you won't have a thousand shares a nice share and you have one hundred shares that is serious so they were forced

really it's forced less at the end just need to go to enormous lengths to get the same features that we had in the past so they have to bring order into the well of a one hundred share lots and they have to actually time it so intense all of these exchanges and to precise exact timing because these out. one of these chain. just who will spill what they're doing onto the network and. will tend to pull their orders and you know there are changes well just to play devil's advocate here for a minute the average person is not a day trader and is more likely to buy and hold over my answer year is and they're probably not concerned about pennies being shaved off their entry and exit so is it really a problem for the average stockholder. oh it well it is the. way you have to sell them and you have a greater chance of being struck by lightning in a very long term so no also we live in the society based on laws if you're ok

with some people out following the rules because it doesn't hurt like for example if you could get how does that affect me i was at an event which person. next will continue to talk when manic founder eric hines saidor you want to hear what he has to say about market micro structure toxic order flow and a rather cool reception by the f.c.c. to then prime interest producer bob inglis and i will take a trip through the robot thing door to find out just who is on the end side now and we have a special announcement to make him. welcome

to the big picture. and. people from all over the world are eager to help. what does it take to become a volunteer. i'm one of the cats do. behind the scenes of the.

now we have more where the air con satre of mannix we talk to him about the role of options and high frequency trading. you mention apple there are five thousand different options on apple now how does play into the options market. well it just

decimating. the average person to analyze prices for meeting a decision you know a lot of times people say well your burdens direct and you get the benefit of that that's not fine you know i'm people base their decision or selling more than what. some people actually want any analyze prices and do economic forecasts that has become serenely expensive because all is well there's no way it's in cross as they have to you have sealed you have to work with this really outside the scope of many academic it's right it's almost like electronic tradeable are not tradeable spam it moving on by law and exchange is supposed to execute a trade at the best available price among all the exchanges and it's called the national best bit offer or and b b o and this is calculated centrally by the

consolidated tape association and i want this to be clear because this is something that i think that's very important that you're bringing up recently and you've discovered that the exchanges are not necessarily using this centrally disseminated source of quotes and information instead they're computing it on their own based on their proprietary data feeds with each of the other exchanges why does this matter . no one there's no consolidate you got a trial is no way to verify or prove word of the exchanges prices were at the time thanks huge early it was a lot of. time and no one really be able to figure out. whether or not that was the case and consolidated feed was simply part of reading in maps so sure. there was a reliable party source and also just servers and other troops know exactly where the prices were and if you went on and we don't have

a consolidated on your trip we don't have you have to go until you look at the data . nobody says oh you don't you know all the teams forces and all the king's men. always say no it was you know in google's technology everything out it's possible. it's just no there's no way to reconstruct it well moving on the f.c.c. it spent millions on its might a system just to be able to monitor the equity markets and real time now why didn't i think come to new and to subscribe to your services for just you know i feel thousand dollars. needed to have a budget. that's a very good question not. the one the one thing that bothers me the most about how that went was. that not just normal wasting billions women could have constant thousands but not even not even looking it's almost like they didn't want to know if you want to hear from one. in this impossible to build

a consolidated audit trail system with the way. at the end video is not used from the said you know when to know that information you may have seen this innovation around the internet i mean i built that. to show the a c c how or it is for we were not as they seem to not quite grasp the importance of consolidated quote and the importance of latency in system important so he said we consolidated for audit trail purposes so you did talk with the f.c.c. and i'm just wondering if you had to have the opportunity to also talk to maybe the c.f. to see and did you find them receptive to what you had to say or were they just forced to listen to you because you were the only guys out there providing this kind of data. c m d c it was worse than it was under a car window invited us out in july of two thousand and ten after we publish what

we found on the flash pressure board he was very receptive he connected us with many others and to see if the city even sent a per ounce to our office and within a day we had been running be able to start actually working was going to stand up we said of the plant. and that was kind of the end of the f.c.c. it seems like they've always been forced to listen for that age active also prevalent in future areas and so in that regard the commissionaire parts help then at the c f t c has said he wants to put a good housekeeping fan of approval on every hour about and they think it is maybe a little. ok of all your what are your thoughts on how to rain and some of the damage that you think posing. far less than. i don't understand why it's taken you this long to find these things is there so obvious to us who've been interested for where it's moved who who work in supermarket area

there's no excuse for this isn't a blatant it's getting even more blatant elation going up. all the walk away and. just sort of puts out a paper that shows at the top a ship tees tain't likely to be fifty nine percent of the time and then if they're successful you see exploratory trading which is and we need the loser strategy when that comes out of the c o t c s academic program using c a t c data and your response is to curtail or severely incur academics access in this data you have food in. there with air favor of a founder of manic. that's

our favorite time of the day daily dool yes it is what's on the agenda today well we're going to guess what bill gates warren buffett michael bloomberg oprah winfrey and jeb bush all have in common i give up well we're not really sure but last weekend bill gates and rented out the entire sanctuary hotel for them to meet now there has been no information or reports on what they were actually talking about it we don't know where all the story literally one place and one place only know worlds right you know when there's no information about what's going on ok so what's your guess what are you speculating ok i'm thinking we have bill gates here massive failure with windows eight warren buffett is there maybe warren buffett is there to help bill gates i don't know bill gates is worried about the stock price of microsoft buffett's going to sell him some long dated puts like he did

a few years ago he called them you know weapons of mass destruction or destruction at one point and these are derivatives but he's back in the game and then i guess we have a bloomberg there he's a little scared he's been spying on ben bernanke or at least the employees of in the chief money printer is not somebody to be messed with so i guess she's just there for moral support she's very good at that. she believes wildly out of all of them she has a little bit to go she's i mean more wealthy than. well my guess is public education because this is bill and melinda gates foundation and their main causes and bill gates released his new plan and it was a report in the washington post last week is to put a video cameras in every single classroom and. america as part of the teacher evaluation system it would only cost five million dollars but he argues of cheaper than paying teacher salaries anyway and if you remember the movie waiting for superman which emphasized the failures in the education system the gates foundation

actually gave two million dollars to promote this film and we did your homework. and then gave appeared on oprah the week it launched to promote the movie himself and then former florida governor jeb bush of the twenty sixteen a presidential contender he's been promoting education reform through his foundation for excellence in education and tapping in michael bloomberg we all know that he wants to control every aspect of our lives and he's already had the entire city of new york. under video surveillance. and warren buffett he's one of the biggest supporters of the gates foundation so he's there in a bad bill gates every move of this teacher surveillance system so that's my best guess quoit to talk to me. those are the. looping on that we're going to take a trip through the revolving door. first

he was bounced around between political appointments academia and even you too big to fail thank you for this jack lew has the honor of being our first revolving door profile after serving in the clinton administration lui landed at new york university for a five year tenure he was gifted a one point three million dollar mortgage for a so winkie brooklyn pad the mortgage was forgiven and interest reimbursed nice deal jack but his next assignment at citi it would trump that after presiding over the bank's giant this giant descended into insolvency from two thousand and six i think thousand and eight he received a bonus of nine hundred and forty thousand dollars the very next year this was after city had already received billions in taxpayer and fed life support but that bonus was contended upon finding another job

a full time high profile position with the united states government or a regulatory body seems he was destined for the revolving door trip because that's where he swung it through soon after serving as obama's budget director and chief of staff before becoming our current treasury secretary and at least he knows how to use turbo tax. next up they called her bloody mary that was the name given by the futures industry in the mid one nine hundred ninety s. after she went from a c c chairwoman to see up to see chairwoman then she thought emerge the two and of course we're talking about mary shapiro she would shortly join the ne is steven rise through the ranks in part during the bernie made us tenure there to become its chairwoman and c.e.o. and apparently fond of industry mergers she presided over the hook up between the end of the street and the new york stock exchange to become what is known as finra then back to the top spot at the city where she reversed her stance against deregulation but to late on implementing the jobs act and money market reforms well

she recently cashed good heading to the top shadow regulator problem and tory financial group and what timing because they would soon. in the public spotlight for their role in the botched independent foreclosure review. very cool and we have one a quick important announcement to make you make it all right we will be at the big quins conference this weekend and we will be talking with some of the top people in the big coin and we will be reporting on it next well you boarding in san jose california i think i do. it was quite the revealing day on prime interest we said white on bloomberg gate and found a bunch of messages leaking from one of his terminals at least we know governor

knows how to use one or has at least logged on once or twice seen some of our top regulators weren't too keen on chatting with those meddling kids to solve the flash crash mystery so we work so we slowed down a bit to talk to high frequency trader eric hunter a man and then bob and i drove to the ultra secret billionaire meeting and focused our powers of hypothesis we looked on the switch so we wouldn't trip over jacquelyn mary shapiro as we entered the revolving door zone and finally what can we say you might be invisible but you're crypto keepers aren't we'll see you soon thanks for watching prime interest come back tomorrow and make sure you follow us on facebook at facebook dot com slash prime interest from everyone at prime interest i'm harry and have a great. real

damage and complexity of this oil spill was not something you can grasp just by looking at dirty birds we have between four to five million people in this directly affected area of the coast and it's pretty clear why it's not being reported because b.p. can't afford to have a reported all along the gulf coast are clean they are safe and they're open for business if b.p. is the single largest oil contributor to the pentagon the us war machine is heavily reliant upon b.p. and their oil this is a huge step backwards for the marker c. it's a step forward. carex it is toxic is a look a lot like spraying and. it was it was not a picture that either the government or b.p.

really wanted to have out there i don't want dispersants to be the agent on. this. she could leverage surely to mccurry was able to build a new most sophisticated robot which all unfortunately doesn't give a darn about anything tunes mission to teach music creation why it should care about humans and work this is why you should care only on the. wealthy british style. markets find can find out what's really happening to the global economy for a no holds barred look at the global food crisis a report on our. i

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see. him again until. you.

the e.u. races to raise billions of dollars to reconstruct war torn mali there are concerns the country is still too insecure and the insurgency too strong for rebuilding to begin. fourteen countries try their luck by seeking permanent observer status at the arctic council all of this in order to gain access to the region's vast untapped energy resources. and the mother's day shooting in new orleans reloads the debate on tougher gun control in the u.s. . is continuing its fierce fight against china.