Goldman Sachs quant code stolen

click

major major major major story...this quant program has been the one running the market up the last few months

probably why the nyse stopped reporting program trading volume last week after years of doing a weekly report

also probably why the NYSE extended the trading day on thurs 15 minutes after the servers shut down
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time to get short. this GS quant code held the market up on low volume days since march

the pattern has been low volume, up day, high volume down day. GS has been propping the mkt up...or government, not goldman. whatever, they are the same

happy trading and forgive my tin foil hat but there's no other explanation for anything these days

I am trying my hardest to connect the dots on that site, it is difficult.

So some ex-top exec at GS who left potentially took GS's code and uploaded it to some site in Germany?

How exactly will this destroy GS? If that code is stolen, they modify and use a new code, they lose the advantage of that code but they will develop a new code.

If anything I would think that GS will sue the crap out of that guy and he will go to jail.

The non-report info and the high percentage of trading from program trading might have to do with summer volumes and retail guys sitting on their hands...

I dunno..

wall - doesnt destroy goldman per se

GS was 40%+ of the NYSE program trading volume the last few months. an obscene number.

GS is the PPT. GS runs money for the Federal Reserve

everything is done through their quant program. they and morgan have been the ones propping the market up since march when ben started printing

Koaj,

that could be correct but we dont know how long they will keep buying futures. Relative margin rules on institutional futures isnt much and if they want it higher it can keep going.

and it begins

jail time for all

if this is correct, then GS was able to front run every single order at the NYSE for as long as this quant code had been running

Only if they enforce the Chinese Wall which they dont.

GS has less retail business than institutional and propriatory, unlike say a Merrill or Morgan Stanley.

rink - this goes beyond FAZ

how do you think GS was able to pay more in bonuses this year than ever before?

wall - not front running their own retail orders...front running every single order on the NYSE. if the allegations are even close to true, their quant code was able to intercept (or helped intercept) orders and determine which to front run and which not to

probably why the NYSE went down last thursday and why the NYSE stopped reporting program trading stats last week

oh the pres of the nyse is ex GS (20 years)

off to my tin foil hat meeting

Crazy crazy stuff.  If the trampling of bankruptcy laws wasn't enough to ensure the flight off the little private capital left in the system, this should do it. I fear of the implications that this might have, but God knows that the mainstream media's coverage of this would have you think that this couldn't be more inconsequential. Scary stuff.

Beyond this, Koaj, I wanted to get your opinion on Karl Denninger. I've been reading him for the last six months, per your recommendation.  I really can't thank you enough because it's been an invaluable source of learning during such a confusing, chaotic time.  However, recently, as I've become more indoctrinated with the realities of today's marketplace, it seems like he's too much of a radical.  His suggestion that spending must stop completely, that the debt needs to be put out in the open and defaulted upon.  this isn't a viable solution in any regard. Doing so, would entail the collapse of society and government as we know it.  This is not optimal (for anyone, including Denninger). So, as Game Theory would predict, spending (at all levels) becomes the dominant play.

So, in my long-winded, round-about-way, what I'm asking: Do you buy-in to everything KD puts forth? His message board wreaks of a fascist state full of brain-washed minions. His recent run-in with iBankCoin about the Golden Cross and his response makes him seem like even more of a power-tripped guy. Now, he's getting airtime on CNBC. What do you think? I've started focusing more on more mild-tempered, even-kealed guys like Rolfe Winkler (formerly of Option Armageddon) and ZeroHedge. They seem more interested in discussion and sharing of ideas, not KD's tyranny of propaganda.

PP21 - you need to check the Denninger forums as well. do i buy into everything that anyone says? no

however in the last two years there have been people who are honest and looking for truth and people who are complete idiots and do not understand that the world has changed for good and it was an overnight change at that

denninger is in the first camp with very few others

i read zerohedge and dealbreaker also

as far as the fleeing of private capital. i do buy side sales and can tell you that there are a number of hedge funds that ive dealt with or am dealing with who have left the equity markets completely. mutual funds arent going anywhere but the hedges are leaving for fixed, corp debt, and bank loans. many of them know whats coming from this Red Administration

pp - regarding the spending, i would say he's right on. all of it needs to stop immediately. all government spending does is add onto the nations debt, nothing else

on the KD forums, dont just read the ticker forum, but theres a breaking news section, fed-up section...a lot of good stuff and very smart people