birds and their outside affiliates and we've been reporting jamie dimon himself is rumored to be on the chopping block he would however retain his c.e.o. title if you from the board finally we highlighted the hot i.p.o. market yesterday with the bullish or bearish reports that private equity groups that have been snapping up homes are going to flip them into rental property i.p.o. but they're doing it much sooner than anticipated says a blogger i have met normally i'd wait a few years to give us investors the rental of the rental management unit is a viable business so is this a sign of market top. all right let's get into what's in your interest.

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 eighteen hundreds 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 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 service is warning that there is no what 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 became increasingly difficult over the next century often the same company stock appeared on different exchanges and at different prices now congress recognized the need for an accurate centralized quote system so in one nine hundred seventy five the securities and exchange commission was asked to help set up and oversee and nationalize the market system with centralized quotes as part of the national market system the national best bid or offer also known as was 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 in the national stock network but the best price for that stock was on the boston stock exchange but the national stock network would route your order to the boston stock exchange so having this information up to date 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. does and price it in the minutes following the two thousand

and ten flash crash and the video feed it would at times lag real changes by as much as twenty four seconds which is a lot of time considering stocks can be traded and thousands and even millions of a second the m.b. video was 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 the ticker on time square now this thing tyranny and destry automation corp. is the operator of the consolidated tape and in two thousand and six and i see took over a sigh ach and i'm in a merger with euro next meaning that nice see your own x. i was the sole owner of the firms that provided security codes so once again nice these 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 was in the fine print of stop quoting. senator ted kaufman spent part of his time in congress warning about high frequency trading. trading firms are currently in line locked in a technological orange letters the result in some big disasters. and then only he made this warning just a few months before the crash and two thousand and ten producer bob english and i had the chance earlier today to speak with eric scott han sader is the founder of man x. i first asked him if he agreed with senator kaufman characterization of the competition

between exchanges and the firms as an arms race meaning that the two are continually having to up the ante in terms of bandwidth and speed and here is his response. that there's not really. exchanges. trading there kind of. relationship. the arms race for going faster is kind of it's almost a gentlemen's agreement. to to to agree to a speed limit and not spend themselves to death and we kind of see this because every time the nicely does a capacity upgrade if two firms kind of spike the capacity 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 sheet what happens is everybody gets to lay. whatever symbols are processed on that same on the same computer so computers will process certain

stocks and you know when you're out of the first letter of the star symbol it's one of those star symbols so they all the whole group and is this something that happened was this a precursor to the flash crash itself and has this happened recently. all that work is what was unique about the flash crash as you look at all the other points of information and what really stood out as even today was as its. own state and pete the last time we had a similar century. mission was on september twenty ninth two thousand and eight cheeriest announced on that day the dow jones struck five hundred points about ten minutes in the current. so it was important for information not to get to ladies this is seen as there's all these machines are basing their intelligence of

what to do on prices and prices. curves in garbage out. and put something on with that they immediately pull out immediately when it's in the blink of an i'm right that's 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 that it's truly finding. since i've been doing this and i started back in eighty six i've never seen could it be it's peter that fast and that great of magnitude it was something to behold but we thought that one of the results of that was quote stopping can you explain what the broader facts are on the market and on individual stocks are of course stepping. right so we have the attitude to look at major firms trade actual trade data already data

we see sadly a lot of it takes to work in order and there are different stages of the order and what we found is when there are messages rates are high the smart order type of 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. because it's more . and are these are these smart border routers that you're talking about are these just are they trying to break up large trades for large institutional traders or the firms themselves can you can you comment on exactly. not a good one so we're looking at it are the intuitional who are trying to obama's in . fact. going to mess with you will you know whether it's a loose change is all the liquidity was concentrated in one place so you can buy or sell the house and shares readily with if you weren't knew it was there now if it

doesn't exchanges you won't have it there isn't sure is a nice shiny and you have a hundred shares that is serious so they were forced really high for two trades forceless if you just need to go to enormous lengths to get the same features that we had in the past so they have to bring order to well over one hundred share lots and they have to actually time is so intense all of these exchanges that the precise exact time it is that you know. one of the exchanges will will spill what they're doing onto the network and. pull their orders at the other exchanges 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 mine thirty 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. if it well it is. when

they have to sell in you have a much greater chance of being struck by lightning than in a victim on the income so no also we live in a society based on law that says if you're ok with some people not following rules because it doesn't hurt like what for example if you could get it how does that affect me or has that effect the average person. i've next will continue to talk when manic founder eric heiden say there you want to hear what he has to say about market microstructure toxic order flow and a rather cool reception by the at the feet and then prime interest producer popping up in. i will take a trip through the robot thing door to find out just who is on the end by now and we have a special announcement to make a tale of. despair

pushed to the limit. full moon hundred days nearly one hundred guantanamo detainees are screaming for justice. where is the end for good no. they're ready to come here to work and not get paid for it. people from all over the world are eager to help the what does it take to become a volunteer at russia's premium museum why do the son of the movie's director come here. from one of the cats do. behind the scenes of the hermitage see.

now we have more where the air comes later of man x. we talk to him about the role of options in high frequency trading. you mention apple there are five thousand different options on apple now how does play into the options market. well they're just they're decimating the bill of the average person

to analyze prices form a decision you know a lot of times people say well your burdens direct and you get the benefit of that that's not far and you know i don't people base their decision on selling more than what. some people actually want any analyze prices and do economic forecasts that has become 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 but 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

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 . not one there is no consolidate you got a truck was no way to verify or prove worth the exchanges prices were at the time. really 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 mass so surely. there was a reliable party source and also into service and other troops know exactly where the trenches were and you went on and we don't have a consolidated on our trip we don't have you have to go until you look at the data

to get nobody. you don't you know all the teams forces and all the king's men. always say no it was you know in google so you know as you get 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. looking it's almost like they didn't want to know you know when i hear from one. in this impossible to build

a consolidated all of internal system with the way. at the end video it's not a use from the sip you know we're going to know that information fair you may have seen this innovation around the internet i mean i built that. to show the f.c.c. however it's for we were not as they seem to not quite grasp the importance of consolidated quote and the importance of latency in the system importance of eastern 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. two we post what we found on the flash special order he was very receptive he connected us with many others

and to see if the city even set a per ounce you are on this and with it we have you know up and 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 or that age have to is also prevalent in future areas and so in that regard the commissioner part of the c. f.c.c. has said he wants to put a good housekeeping fan of approval on every hour hour and they think that is maybe a little. ok of all your what are your thoughts on how to reign and some of the damage that you think posing. far less than. i don't understand i'd say to you this loan to find these things is there so obvious to us we've been interested for a long time and there are obvious to others very soon who who work in supermarket

data there's no excuse for this isn't just blatant it's getting even more blatant the elation going up. all the walk away and. jones sort of puts out a paper that shows at the top a chip t.'s 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 to be a loser strategy when that paper comes out of the c o d c's academic program using c.d.c. data and your response it's to curtail or severely incur academics access to this data you're not fooling anybody. there was a 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 take a guess what does bill de 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 gave them 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 what we know they were on the story and literally one place and one place only no worlds right you know when there's no 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 has 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 wealthy out of all of them she has a little bit to go i mean more wealthy than. well my guess is public education because this is bill and melinda gates foundation when 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 that cheaper than paying teachers salaries anyways 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 it 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 systems 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 slinky 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 descend into insolvency from two thousand and six at the 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 emerged 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 jobs act in 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 about the very cool and we have one quake important announcement to make you make it all right we will be at the big quince 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 a mystery but we work so we slowed down a bit to talk to high frequency trader eric hunter a man involved and i drove to the ultra secret billionaire meeting and focused our power of the 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 your crypto keepers are 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. live

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clue. choose your language. kill it they kill it oh and if they sell some of that. shields that the concerns get to. choose the opinions that invigorating good. choose the stories good in life choose to access to your office. 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 for oligarchy carex it is toxic is a look a lot like spraying in vietnam 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. dangerous experiments on prisoners they want to make money and they have healthy guinea pigs in the regular society they're not able to use prisoners i mean more they wish they could. drug tests on human guinea pigs. hate

to deadly pills to get passed away killed. he didn't pass away let him get. his pharmacy really about helping people. to save. a. place.

recorded and revealed security services release a tape of a cia agent pledging millions to get a russian officer to turn against his country. inmates at guantanamo bay are reporting escalating harassment saying they're being subjected to painful and degrading searches for reasons as petty as the telephone law is. the cup of nations eager to cash in on. china and india getting a stronger voice when it comes to carving up the region. security of the sanctity of the u.s. government turns up to a mass surveillance operation targeting journalists with the white house national security as the be all and end all our top stories this.