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A Computer + Digits + Trading Platform = Rigged Markets!

April 14, 2016

Today, we trade our markets via algorithms and HFT (some 70% of trading transactions are now via coded algorithms). This means that If I have a high-speed computer, digital money in my account, and a sophisticated trading platform, I can manipulate prices and rig a market (like the DOW). Our Dow Index has only 30 stocks and if I manipulate the prices of the 8 major stocks within this index, I can manipulate the entire Dow Index via my trades. The key is sufficient ‘digits’ (called dollars) within my trading account. One computer and one trader can manipulate and rig a major stock index such as the DOW. Who is aware? Today, algorithms do most of the trading within our electronic markets. This means that machines do most trading and algorithms can be coded to rig prices within any electronic market. The key is having sufficient ‘digits’ (called money) for my trading!

Today, I could use my computer + money digits + a trading platform to rig/manipulate our electronic markets! One trader with sufficient ‘money digits’ can accomplish this rigging in real-time daily!

Yes, I could rig and manipulate a major Index or Market via a computer, lots of money digits, and a sophisticated trading platform (now available for practically any serious trader). We now live with computer machines, robots, algorithms, and trading platforms which can trade at the speed of light continually. I can ‘spoof’ a market via my algorithms and my trading actions. This is what one economist has stated:

‘Spoofing in an Algorithmic Ecosystem’

Rajiv Sethi comments on the charge that Navinder Singh Sarao manipulated prices through “spoofing”:

Spoofing in an Algorithmic Ecosystem: A London trader recently chargedwith price manipulation appears to have been using a strategy designed to trigger high-frequency trading algorithms. Whether he used an algorithm himself is beside the point: he made money because the market is dominated by computer programs responding rapidly to incoming market data, and he understood the basic logic of their structure.

All our global electronic markets can now be manipulated and rigged via computer algorithms and trading strategies. Today, select traders with the right machine and sufficient money ‘digits’ (digital money) can manipulate prices in real-time via their rapid fire trading algorithms and this can change our digital prices within milliseconds. My sense is that our Central Bank trading rooms and/or our Exchange Stabilization Fund trading desk has been rigging and manipulating select electronic markets daily. Look at this tick chart of our DOW:


Our Dow Index is now at 17,926 (up some 2,200 points since mid-February) and our economy is stagnating while all this upward movement happens! Why are global stock markets being elevated daily by computer trading algorithms when our ‘real’ economy is not growing? Rigging is ubiquitous today to maintain ‘confidence’!

Anyone who has been observing our global electronic markets can discern that our markets are being manipulated and rigged. I am shocked that so many media commentators can not discern this daily reality. Are they thinking? Are they discerning the markets? Could they be uneducated about the ‘nature’ of our markets? All of the above are likely the cause! Watch as this daily rigging continues as our REAL economy crashes! Enjoy! I am?

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