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To: ftth who wrote (34860)	8/7/2010 2:25:08 PM
From: axial	Respond to of 46821

The story goes back 4 decades, and involves the confluence of several streams. All of which would be off-topic here, except that one of the streams was the rise of neoliberal economics, and decidedly anti-regulatory ideology which also affected telecomms post-1996 but especially, post-2000. Another stream was pervasive industry lobbying, with billions spent by the financial sector. In a shorter timespan telecomms matched the effort, if not the expenditure. If you search for Matt Taibbi you'll encounter a raft of articles in Hunter S. Thompson-ish style that detail legislative idiocy by bought politicos dancing to the corporate tune. Because he who pays the piper calls the tune. It's depressing. Expert consensus on the next collapse is that it's just a question of when, not if - and of course, there's no money left to dig ourselves out next time. For that we can thank inadequate reform and corrupt legislators. Now, regulators don't even have the tools or laws that Roosevelt once gave them. Jim

To: ftth who wrote (34860)	8/28/2010 6:25:45 AM
From: axial	Read Replies (2) \| Respond to of 46821

Right down to zero, in yet another flash crash... "So there you go: no NYSE Liquidity Replenishment Points to blame here, but a pure and simple example of an algorithm going haywire. We wish to thank BATS exchange (which is no longer content with busting the NBBOs in the US, it has now also decided to go after Chi-X in Europe) for allowing this vivid demonstration of a mini flash crash in action, in which there is absolutely no fat finger, no Greek parliament to blame the crash on, and is merely a function of a busted HFT algo which ends up making a mockery of the price discovery process. Our market continues to be extremely fragmented, poised for an increasing number of micro flash crashes either in one name, or multiple, and with the SEC continuing to dither and take no action to remedy the broken topology and microstructure of the market, we can be certain that we will see many more such examples in the future. Only this time everyone will know that just like in this isolated case, it will be the HFTs which have completely destroyed the credibility of an efficient market." Nanex Dissects Yesterday's CMT Flash Crash: Catches BATS, NASDAQ HFT Algo Red-Handed zerohedge.com Jim