Michael Lewis is not talking about the stock market that you see on television every day. That ceased to be the center of U. This is the stock market that Lewis is talking about; the one where most of the trades take place now, inside hundreds of thousands of these black boxes located at more than 60 public and private exchanges, where billions of dollars in stock change hands every day with little or no public documentation.
The trades are being made by thousands of robot computers, programmed to buy and sell every stock on the market at speeds times faster than you can blink an eye.
60 Minutes Asks: “Is the U.S. Stock Market Rigged?” - Loring Ward
The basic mechanism that he describes is this: You place an order for a stock, say Microsoft. They buy the Microsoft and bring it back to you at an inflated price. Technically, Lewis says, all of this is legal.
The US Government Has Rigged Precious Metals Markets For 80 Years!
The odd thing about the interview is that they did not bring up the hottest topic around high-speed trading: The core argument is that those who access this proprietary feed can calculate the most current bids and offers known as the National Best Bid and Offer, or NBBO quicker than those who get the public feed known as the Securities Information Processor, or SIP.
That can indeed provide a trading advantage. If you are a long-term buyer, under some circumstances — particularly during times of high volatility — high-speed traders are indeed trying to scalp a penny on your trade. Would I like to see fewer of these price dislocations?
Do I think this is some outrageous act of highway robbery? For an excerpt of the book, you can visit the New York Times.
Stock Market Is Rigged, Explains Michael Lewis On '60 Minutes' - omotohu.web.fc2.com… | Pinteres…
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Seidl Mar 31, 9: Author Michael Lewis is out with a jarring claim: Kroft goes on to explain: Still, he says the difference in stock price for private vs.
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60 minutes Archives - Loring Ward