18 votes

Somebody stole 7 milliseconds from the Federal Reserve

Somebody Stole 7 Milliseconds From the Federal Reserve
—By Kevin Drum
Tue Sep. 24, 2013 12:20 PM PDT119.

Last Wednesday, the Fed announced that it would not be tapering its bond buying program. This news was released at precisely 2 pm in Washington 'as measured by the national atomic clock.' It takes 7 milliseconds for this information to get to Chicago. However, several huge orders that were based on the Fed's decision were placed on Chicago exchanges 2-3 milliseconds after 2 pm. How did this happen?


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DJP333's picture

Non taper was not a surprise....

Peter Schiff knew they wouldn't taper, but again got ridiculed by the MSM.

"It’s not pessimistic, brother, because this is the blues. We are blues people. The blues aren’t pessimistic. We’re prisoners of hope but we tell the truth and the truth is dark. That’s different." ~CW

Initials of suspected "front

Initials of suspected "front runners"; J.P.M., G.S., C., B.A., B.B.H., B.L., B.
They own the FED!
They have monopoly money to put massive trades on.
They also can absorb any loss if the market reacts in opposition to their positions (unlikely due to massive thrust provided by the massive volume).
The trade only needed to last a few minutes for them to profit hundreds of millions and get out.

If they know the content of the announcement, they know what key words the black boxes (hedgefunds use computers to read headlines) will see. So they put the trades on before the announcement and the black boxes go for the bait. In this case massive buying aided by massive short positions being squeezed to liquidate - which causes an upward spiral in buying (shorts have to buy to get out).

High frequency trading?

High frequency trading?

"The United States can pay any debt it has because we can always print money to do that." — Alan Greenspan


HFT is in and out in seconds, taking small moves in price.
This is front running the front runners. Meaning you position yourself in front of a buy or sell event before the front runners who locate their servers close to exchanges in order to pick up an advantage of a few seconds to get in before the herd.

Now we know what HAARP is

Now we know what HAARP is for. ;)