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Complexity, Connectivity, and Control – the NASDAQ issue revealed!

August 26, 2013

Today’s complex and connected markets reveal that we now live with a NEW paradigm for our global markets. What has happened and what is happening seems a relevant message for today. The recent NASDAQ trading halt was not the first data feed issue confronting our trading markets. What has happened in recent years as a result of our interconnected markets is a recognition that finance has changed from the old days of physical monetary exchanges between counterparties. We now have data feeds at near the speed of light for our buy/sell orders and all our financial transactions. Fiber optic cables have been installed and connected creating a world-wide network of speed of light connections and interconnections. Also, our money units have evolved into digital/electronic units created mostly by our Central Banks.

The New paradigm (now emerging) is one planet with a centralized Authority for finance and money! This is now emerging via mergers, politics, and real-time consumer activity! The key words today are ‘interconnectivity’, ‘complexity’ and ‘control’.

Our entire planet is now connected for high-speed monetary transmissions! This new paradigm was made possible by closing the gold window (1971), adopting digital currencies (1980’s), and using math (numbers) as our money units (the free-floating fiat currencies and index numbers which emerged since 1973)!

The underwater fiber-optic cable system (now mostly global) has created our speed of light transmissions and data feeds. This internet system has now expanded into a wireless transmission system via our earth satellites and mobile technologies! The new speed for price discovery is the speed of LIGHT!

The other important issue to understand is that practically all our Stock, Futures, Commodity, Derivative, and Options markets are now mostly electronic markets. We have some 13 Exchanges in the USA which connect via the fiber optic cable system to create data feeds for all our markets. Currently, many of these Exchanges are merging and combining to form bigger and more comprehensive Exchanges for our Global trading and finance. IntercontinentalExchange (ICE) is in the process of buying the NYSE Euronext for some $10.2 billion. The BATS Exchange and Direct Edge are planning to merge (soon) and create the 2nd largest (by volume ) Exchange in the World (2nd only to ICE and NYSE Euronext). The NASDAQ Exchange could move into 3rd as these mergers develop and finalize. In total there are currently some 13 major Exchanges which are now interconnected via various types of data feeds within the USA.

The BATS Exchange (Kansas) and DIRECT EDGE Exchange (New Jersey) will soon merge to become the 2nd largest Exchange (by volume). Both these exchanges are electronic exchanges as are the NASDAQ and NYSE Arca. All Exchanges now allow electronic trading as price discovery is now a virtual/electronic result (operation).

The problem of the three-hour trading halt by NASDAQ last week was most-likely a problem with the interconnections of the data feeds between the NYSE Arca and NASDAQ. Data feeds can vary in speed by millions of a second depending upon the connectivity between various Exchanges. This variance can affect the transmission of prices between Exchanges as connectivity can vary from sender to recipient. Keep in mind that information is now transmitted via cables and wires from sender to recipient at varying speeds (some in millions of a second and others in billions of a second). This variance can create advantages and disadvantages for High Frequency Traders (HFT). Those with a superior location next to an Exchange (called co-location) allows for faster data feeds (less latency). Traders desire the fastest and the best transmission rates so they can multiply their advantage over their competition. Data feed rates become important in today’s world of high-speed computer transmissions.

The key word for today’s interconnected markets is ‘CONNECTIVITY’. Data feeds (including price discovery) depends upon connectivity and transmission of digital/virtual information from computer to computer.

Fiber Optic transmissions are now near the speed of light. Digital money units are transmitted via this new technology globally. Central Banks create these digital currency units from their Consciousness!

What we have today is an interconnected World Market for finance and monetary transactions. The entire planet is now interconnected and wired for high-speed monetary transactions via digital money units and virtual reality information (all within the computer screen). The historical money units of paper notes, metal coins, silver/gold coins has been replaced with our digital/virtual/imaginary money. This is our World of money and finance going forward. Who is aware of this change and its implications for our markets? Who recognizes that today’s markets are very complex, interconnected, and controlled by select Exchanges and select Central Banks? We now live within a New financial paradigm which is global, connected, and controlled (centralized and getting more centralized). This New paradigm will change everyone and change our planet’s economics going forward!

All our financial institutions are now interconnected and use digital currencies for their money units! Our financial system is now VIRTUAL and with the Computer Screen. Who is aware of this reality and its implications?

Now is the time to prepare for more volatility and flash crashes as our World seeks to create a Global Financial Market under the rulership of ONE CENTRAL AUTHORITY (down the road). This is evolving gradually now as Exchanges merge and our trading becomes more globalized and operational within Real-Time. The goal of Exchanges is to control all the markets via their centralized Exchange. The coming merger of ICE, Arca, and NYSE Euronext…and Bats and Direct Edge are typical of what is happening within our real-time markets. Centralization and Globalization are the trends in motion today. These trends are likely to continue and to magnify in the coming months and years. Our planet is becoming an interconnected market (village) of real-time information and communication. It’s happening in front of our eyes! Who is AWARE and discerning of these trends?


Our planet is now a global village which is fully connected in real-time. Our new technologies have helped create a new world for politics, religion, economics, and consumers. 7 billion earth inhabitants occupy our planet!

Now is the time to get informed and educated about all the above changes. We will soon need to construct a new economic system for this planet as the old paradigm is crumbling in front of our eyes! Watch the markets as it now appears that our Stock Market has peaked and this could mean major changes for finance, economics, gold/silver, and our digital world of politics going forward! Watch the Middle East for some explosive events in the coming months. Enjoy! I am:

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