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Is the US stock market rigged?

jthomas666

jthomas666

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twofbyc said:
The way I understand it, "Front-running" is illegal; that's exactly what is being exposed here, just that it's being done in a different way (electronically). Still the same act, same results. Has the Fed done anything illegal? If so, they should pay the price (or someone should). Supposedly this "e-front-running" is not specifically illegal (don't know why not), so they have to come up with other methods to prevent it until laws can be passed making it illegal.
Click to expand...
My memory isn't what it used to be, but I *think* that the current laws on e-trading address "programmed trades--where the computer is told, Buy X shares if the price hits Y. That law was put into place because computers react so much faster than humans.

What is going on now is legal--humans are still making the trades, but if everyone is making the trades at the same time, the guy with the fastest connection has a distinct advantage.
 
twofbyc

twofbyc

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jthomas666 said:
My memory isn't what it used to be, but I *think* that the current laws on e-trading address "programmed trades--where the computer is told, Buy X shares if the price hits Y. That law was put into place because computers react so much faster than humans.

What is going on now is legal--humans are still making the trades, but if everyone is making the trades at the same time, the guy with the fastest connection has a distinct advantage.
Click to expand...
that is not what I got from the cbs/60 minutes story. you click to buy, your trade gets intercepted and you either a) have to pay more than what you thought you would because thief bought same thus driving up share price before you could buy or b) you didn't get all of what you wanted, only partial order filled at the price you requested and to fulfill balance of order you will have to pay more for the remaining stock.
What some don't understand is that in most instances, the difference in cost is miniscule per share, but multiply it times 100 million and you have some serious coin.
 
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