The Latest Twist In HFT [High Frequency Trading]: Atomic Clocks

THE LATEST TWIST IN HFT(HIGH FREQUENCY TRADING): ATOMIC CLOCKS
Source: GizaDeathStar.com
Dr. Joseph P. Farrell
July 11, 2016

Mr. J.K. shared this story with us, and I have to talk about it. In previous blogs I’ve talked about the growth of “dark pools” and HFT (high frequency trading) algorithms, where computers place trades on the stock markets and commodities markets, and a few pico seconds can mean whether a trade is placed or not, or whether a trade will be successful and profitable or not. Now, the latest twist, according to this article, is that atomic clocks are now to be brought into the picture:

Legendary Hedge Fund Wants to Use Atomic Clocks to Beat High-Speed Traders

Yes, that’s right, the rates of radioactive decay will be used to coordinate simultaneous trades in multiple markets:

The 16-page document was quietly published by the U.S. Patent and Trademark Office in February. Replete with schematic drawings, the filing describes a novel way for “executing synchronized trades in multiple exchanges.” The invention consists of not only sophisticated algorithms and a host of computer servers, but atomic clocks — precisely calibrated to vibrations of irradiated cesium atoms — to sync orders to within a few billionths of a second.

And if it works as advertised, one of the most illustrious names in the hedge-fund business could gain exclusive U.S. rights to a weapon capable of thwarting even the most predatory of high-speed traders.

The application belongs to Renaissance Technologies, the ultra-secretive and highly profitable $32 billion firm founded by mathematician and former code breaker Jim Simons. And the lengths it’s been willing to go to build and patent its own computer-driven technology — at a potential cost of tens of millions of dollars — underscores just how big a threat high-frequency traders have become to the industry’s largest and savviest players.

As you might expect, I simply cannot resist some high octane speculation – or in this case, really way-out-there-in-orbit speculations – about this story. In the past, I’ve pointed out that HFT really is a kind of trading that is no longer reflective of genuinely human markets. After all, the 2010 Flash Crash showed us what can happen when a computer “goes rogue” and places trades that can literally drive down or pump up a stock or even whole blocs of stocks with no real reflection of their market value (AI anyone?). And for those wanting “the nightmare” scenario, think of that episode from the CBS television series Person of Interest, where a malevolent AI literally crashes the New York Stock Exchange, then miraculously shuts down its trades just before the NYSE’s “failsafe” systems kick in to suspend trading. And if you really want to speculate wildly, remember all those stories of UFOs shutting down, or worse, turning on, ICBMs in their silos and beginning the launch countdown. ETs, or AIs, take your pick, the bottom line is that HFTs provoke the philosophical debate not only of how secure digital systems are, and how well, or poorly, they reflect genuine market value and trades.

Continue Reading At: GizaDeathStar.com
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Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and “strange stuff”. His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into “alternative history and science”.

In The New [Or Is It]: Did Anonymous Just Hit The World Bank, Fed,..

 IN THE NEWS(OR IS IT?): DID ANONYMOUS JUST HIT THE WORLD BANK, FED, ...
GizaDeathStar.com
Dr. Joseph P. Farrell
May 28, 2016

There’s more news about the hacking group Anonymous and its hacking exploits, or is there? Well, if you’re watching the lamestream news, not really, at least, not according to these two articles that many of you shared:

Anonymous Hits New York Stock Exchange, World Bank, The Fed, and Vatican — Total Media Blackout

Anonymous Hits New York Stock Exchange, World Bank, The Fed, & Vatican — Total Media Blackout

We blogged this story previously but now there appears to be a new wrinkle to ponder if  you read these two articles closely, a wrinkle having to do with our high octane  speculation of the day. But first, a caveat: we are assuming for the sake of argument that these two articles – which are more or less the same – are in fact true. But there is equally the possibility that they may not be, or at least, may contain a degree of “disinformation.” This would dovetail quite nicely with the view of some that Anonymous may not be the “independent, altruistic” group that some say it is, but rather, a global organization with big backers behind it. Some have been of the opinion that it represents a cut-out for Chinese and/or Russian cyber warfare activity against the West, and given the West’s own economic warfare on Russia, a response in some form is to be expected. “Two can play the covert operations game”.  Again, completeness also demands that one entertain the possibility that the group may even be the dialectical catspaw for the banksters themselves, a way of demonstrating the vulnerability of current digital financial systems to create a climate of opinion to emplace something draconian.

Continue Reading At: GizaDeathStar.com

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Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and “strange stuff”. His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into “alternative history and science”.