What impresses me is the standard deniers and the standard blind-men that show up for these events. In any case, (…), pants on fire.
This story starts with Michael Lewis‘ new book Flash Boys (ISBN:0-393-24466-0)
The New York Times Magazine has an adaptation by Michael Lewis, if you’d like to read a chapter.
In context, William O’Brien & BATS Global Markets is one the companies highlighted as “riggers”. In case you missed this, CNBC asked the question Is the (stock) market rigged?, with reponses from the following
- Henry Blodget – Business Insider, says “The Concept (…) is Crazy.”
- Larry Kudlow – CNBC commentator, says “No. I don’t believe its rigged.”
- Mark Cuban – shark investor, says, “Well … that suggests Micheal Lewis is right. And something is rigged and not right.”
- William O’Brien – BATS Global Markets President, “Brad and Micheal shame on you….”
- Brad Katsuyama – featured above, “I believe the markets are rigged, and you are part of the rigging,” to William O’Brien.
- Micheal Lewis – author of the book, “I visited BATS, and …”. He never complete because of O’Brien interrupting and the CNBC editing.
At (~2:28) the story moves to the unemployment numbers for the quarter.
CNBC trails with a story where Peter Nabicht, of Modern Markets Initiative, claims that “the high volume of participants” makes it legitimate.
- High-frequency trading benefits investors: Advocate – (5:06)
In the video – when pressed, he (Peter Nabicht) says the real issues are: “Insider Trading, Front Running, & Early Access to Data”. CNBC counters(~3:55), much as Mark Cuban does,
if you take a High Frequency Trader, like Virtu, and they only lose money one (1) day in 1238 (3+years). (It can only be rigged.)
Then there is this:
- Silver Lake-backed high-frequency trader Virtu Financial pulls IPO in wake of Michael Lewis book
- CNBC’s Bob Pisani has an article that explains the technical.
- The New York attorney general to probe high-frequency trading.
And finally, SEC official: What’s hurting the ‘little guy’