I’m neither techie nor trader, but in my considere...

2009-07-14T21:56:03.369+08:00

I’m neither techie nor trader, but in my considered opinion, acquiring GS's front-running capability overnight is not the motivation here. You are right: front-running requires before-the-fact knowledge of orders. I believe no firm would be stupid enough to believe that they can do the equivalent of “plug and play” with this code, and that GS would not, among others, counter attempts to access the databases (client orders?) and information streams (NYSE itself?) fueling its top secret trading program.

I feel very strongly against market "manipulation", but I don't have enough basis to figure out how this could be done (or is being done) in Wall Street in this age of "block-box" trading.

As to your last point about this being a smoke screen to something, welcome to the Wall Street Conspiracy Theorists Association. LOL

The part I do not quite understand is how some oth...

2009-07-14T06:46:29.997+08:00

The part I do not quite understand is how some other firm would be able to properly utilize this code. I assume front running involves before the fact knowledge of orders, not detecting after the fact patterns in executed orders.

According to the stats, GS is responsible for 40% of the program trading activity, so it can front run against its own clients. Who else has access to that large a body of order executions? How do the ‘markets’ get manipulated?

So, is this a smoke screen to lock down the code as it will reveal something different about its purposes? Theft of IP shows GS has been harmed and justifies preventive actions - why the need to warn about the possibility of a financial WMD?

http://beaconintegration.com.

Comments on An Investment Banker's Take On Life: A Reminder from the Sergey Aleynikov Affair

I’m neither techie nor trader, but in my considere...

The part I do not quite understand is how some oth...