today. these are the images grope world has been seeing from the streets of canada. trying to operations are today. finally as promised here's my interview with ben willis from the floor of the new york stock exchange where we talk about the vanishing liquidity in the markets h f t and how to buy protection in these crazy market times. i'm steady here on the stock exchange floor. with the third ben thank you for joining me now you said that you've been here thirty years what have you been doing this entire time and how

this how have things changed i continue to learn something new every day last thirty years i come in something's always change i mean the most dramatic change for me has got been from trading on paper and learning stock symbols to trading electronically and having a future in my and that's replaced paper and where are all the h f t algorithms that i keep hearing about they're not on the floor here they're in the data center so they're here i wish i had brought my handheld camera with me and i looked at my both of my power but they are embedded in our handheld so ok you know high frequency trading often gets a bad not all high frequency trading it's predatory sure and some of it addresses why it's look right it's it's it was a necessary tool to interact in the marketplace as it evolved and became more electronic. unfortunate that a limited a lot of the human influence in the marketplace that we now wish we had the new york stock exchange managed to check that particularly in times of trouble. you

know the high frequency trading the hear most often about is the predatory model that shooting against your trade against other natural participants they have no reason to be in the market other than to trade against somebody else or to flow that i don't think and you see it as a natural level so. in the march toward electronic trading i mean how how is this war going to look in five or maybe even ten years i don't think was natural i think was government intervention in the process of all our competitors buying votes in washington. we were the we were the the platinum or the diamond standard of trading in the world and our competitors like what we had but didn't want to spend the money to get in the door here so they spent the money in washington and that would be reagan and reagan as we have both trading and trading him in pennies fracturing the marketplace where they basically see three major four major trading venues you can now trade up to eighty different venues in any given day that has done nothing

but drain liquidity from each of those holes and left them really pottle and now we have dark pools and that's maybe ten four percent of total volume what is that how is that impacting your business the near stack is change the original dark or we would post the full. half three quarters in a marketplace in those participants and then he's a member for to come to the floor and find out where they can trade a block of stock that's not electronically pain and that's where those high frequency traders come in they came in those dark pools to sense where their supply and demand and trade against it but one of the reasons they've gone dark and try and remain dark is to avoid being detected by the marketplace and status excessive model and you think there is still a role for humans to capture back maybe what was lost a few years ago with electronic trading and so i think my analogy is this where you get out you could probably fly in a plane for five dollars from here to the los angeles if there were no pilots but if you need a pilot when you take off you need

a pilot when you land but more importantly you want to pilot case you hit turbulence in the middle of the day for a mil a flight that's what we do where the human element that intervenes and says wait a minute there's something wrong here we've actually been restricted from doing that by our government telling us what we can't do and i can tell you that i'm sure tommy joyce had. night trading wish we had a little bit more involvement people still knew there was a problem and we want to allow to do anything with the water flow till night literally and plug their computers right and of course they're out of business now and we were here on the flash crash what happened that day and what kind of restrictions were there on you another great example where the flash crash was shot heard around the world sir not a single trade on the floor of the new york stock exchange that they had to be broken because we hit what we called r l r p the stocks reached a point where the professionals and you missed the point of sale so wait a minute there's something so we slowed down trading at the palace and in this less than less then sixty seconds we retreated every single one of those stocks that

trade here but in that sixty second time period the rest of the world lost their mind and stocks are trading at fifty dollars trade it authentic and of course a lot of those got to pay if they go ahead will they wind up having to break those trades but that was a great example of what happens what and happen again with the might the bottle right and can happen which is why it's so important to have humans at the point of sale if you're a stock issue or you really want to be at the hands of a computer since we saw what happened the flash crash we saw what happened with facebook and it's not pretty you know the basic plans i think you know disaster that happened with nasdaq and there i think nasdaq is getting the biggest fine ever for that as a result so let's move on it's apple and see day right is it a big day here at the exchange because of that well the expectation was it was built into the marketplace and we had nothing but disappointing sometimes it was the bar was very quiet if we are very quiet going into the meeting once we got the announcement we start the pick up a little bit but basically what i'm saying is all asset classes across the board

not only equities which are down about one hundred forty points on the dow right now but the bond market is really getting hit hard and that is a little bit that's a little dis concerning because i think what's really happening is what the natural evolution of interest rates will events. the rise there will be tapering and that will be a buying opportunity for investors in the equity market so when you see sell offs like this that's when you should have your shopping list ready to be buying the stocks if you know what they are what they're worth that they're probably being sold at a discount ok and we're heading into summer now this summer doldrums are kind of famous for its response to sell in may and go away that really didn't work so well in may but we lost four points on the upside to your portfolio if you did that so what do you see here for the summer in store for us a fortune i don't see a lot of the trading volume is going to continue to dry up what will be interesting is the volatility has continued to increase since may because the fed is giving indications or i would tell you that the fed has begun tapering just by the fact

that there is what i call job it's a much more tool in the federal federal reserve still blocks in any central bank still box the fact that they're talking about is having the side impact so they're having a test vote machine what's happened to the heels on the bond market they saw what happened to equities so rather than popping a bubble they're deflating it and it's so far it seems to work so far so good we hope it continues you mentioned volatility are you seeing anything in the vix that's interesting long dated premiums are they going up for the vix is very interesting and it had a pretty good move up although today i'm sure it's growing up even even further as you speak for months ago it's been fairly dormant by historical standards but that one place where i would tell those people that all along only investors they want to spend money rather than buying stocks where they were they i thought they were overpriced you're better off find a little vix advice for protection when i the correction that will happen does will make money and it picks position that should help offset the loss ben thank you so

much for joining us as this is a pen as well as and we are out of here thank you so much. looking at you it's a little bit different than the bumper but joining me today political commentator sam now when it comes to agriculture the world food prize is the equivalent of the oscars and this comes from a new york times story this year the prestigious award went to the mastermind behind monsanto's big move into genetically modified crops in food terms this is like a commercial blockbuster winning best picture of rather than an independent artsy film but whatever you think about monsanto despite increases in productivity nearly every year prices are rising so sam my question for you is this because of the speculators probably look i don't have

a problem with speculators i think in general you know speculators never purpose in the market when people are you know need to sell their oil out of the market and nobody is buying oil then you need a speculator to come in here and hold the contracts the problem is ramp it speculation which is what we're seeing now the big banks have found a new market to make a lot of money and that's betting on the price of oil and unfortunately those bets can have significant consequences on the actual price of oil if you if enough people bet that the price of oil is going to go up and by futures contract it's going to go up the price of oil will go up and that has really nothing to do with the supply and demand of oil so the guy who likes free market i think you would be opposed to that too well what free markets are we looking at here these big banks they enjoy huge subsidies i mean they're basically subsidized by the federal reserve both in real and notional terms i mean they get their money from the fed and from being able to conduct these transactions and like you said j.p. morgan itself has a huge hand in the role of oil speculation but that doesn't mean that it's a problem that has to do with free markets and i think there is

a big difference between what people call deregulation and free markets so it's not a failure of freeloaders we just don't have there's a market for rampant speculation i mean that market's been created now it's a matter of whether we want to keep perpetuating that marketing people letting it run free or whether we're going to start clamping down on the market now that we see the effects of such a more. ok so you're a central planning kind of guy how do you want to clamp down on these speculators with well i mean there's no i mean the president obama's actually taken on this issue kind of you know he's always. talked about you see proposing more rules on. speculators you know it's tapering you more transparency to it you're right it always gets table because we know where the lobbying interests lie and we know who usually wins when the stores sort of my question to you is how do you make your central planning theory work like how do you rein in these markets that are not free to begin with you just impose arbitrary guidelines on them and who gets to make those decisions if not you yourself me myself and my central planning. perfect

economy i'm the central planner here and i know it was merely that but look in two thousand and ten i think it was you had you had rampant speculation in the fact that roughly the same amount of oil that was consumed in china was also bought by speculators in the united states and of course you see the prices in two thousand and eight the price of oil went up to four dollars four dollars a gallon i mean and then it came down to one hundred forty dollars per barrel and then it came down to thirty dollars and that was actually below the cost that it takes to get up from the earth whether it's the high price or the low price it has nothing to do with what the price should actually be based on supply and demand if you talk to opec as these prices were going up in two thousand and eight they're like we have no help flowing here there's no problem with this here we have the underlying problem the reason that there's so much money flowing into these paper markets whether it's oil whether it's gold or whatever it is because that is basically giving it away now i'm all about free markets so i would say and the fed you know and the subsidies to the big banks and they can just they can figure out

some other line of business to get into i agree with you one hundred percent we should do all those things and the other thing we should do if you don't want to speculate or want to get in the market and they want to speculate and buy a million dollars worth of oil or a million barrels of barrels of oil they have to actually take possession of those . million barrels of oil that no one else wants about i it's what you need to do when you do you're speculating and what about my speculating well i hear you do a lot of speculating bob and i think you should take possession of all the things you speculate on such as what i think we have there it is that's sort of delayed and that's a really disturbing i've heard. all right this was sachs and if you want to weigh in on today's show be sure to like us on facebook at faced up facebook dot com slash prime interest and don't forget you can follow them on twitter at sam sachs and you can follow me at english p.i. sam thank you so much for your os on the door yes.

well it was a topsy turvy day here at prime interest first we saw both stocks and bonds march down in lockstep to the bernanke the two step when i boarded the express train to new york to talk about the backward ization of liquidity in the markets and the vaporization of our homosapien traders neil ferguson turned our hope for the west upside down and super sam sachs made us question the role of the speculator not for too long so thanks for watching and make sure to come back tomorrow from everyone here a prime interest of a great night. for .

the. publication so choose your life stream quality and enjoy your favorite. if you're away from your television just doesn't work so now with your mobile. by skip you can watch artsy anytime anywhere. react to situations i haven't read the reports. for years and know i will leave them to the state department to comment on your plate. to secure a car as i. know. no more weasel where. when you made a direct question be prepared for a change when you have to run should be ready for a. pretty speech. down the freedoms of past.

lives both. live. at the speed. limit. just seems.

a little. million people rally against the government in a hundred cities across brazil with an eighteen year old becoming the first fatality reported among the activists. a recent poll says euro skepticism is on a dramatic rise in france we look into why people are one of the founding members of the twenty seven nation blog think they'd be better off. as the us army is in gauged in a huge disposal destroying expensive military hardware in afghanistan billions of taxpayers' money is ending up on the scrap paper.