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There are may and that.
Trading firms that are are built.
All about speed all about how quickly can you execute on information and they have machines.
-- natural language do machines that read this stuff.
Translated into action there was no human involved in these trades yesterday there -- literally machines that are reading there's two there's Twitter -- Understanding what it probably means executing trades and other machines see those machines executing trades they pile -- as they want to be John Q public to the punch.
And that's what you get so crazy -- levels of volatility so Joseph public's for a long -- Takes a dive because of machine and has read -- hacked tweaked yup that just seems.
And -- ridicule it's -- it's insane.
You know what's so insane but you did that I can go on and on about how crazy this world has become a you'll you'll find is probably fairly interest -- did you know it you know.
That the New York Stock Exchange actually and leases how.
For trading firms computers.
And they charge more the closer you wore to the New York Stock Exchange computer now why is that because every.
Foot closer to the NYSE computer the trading computer is -- -- nano second lap.
Because the speed of light is the maximum speed in the universe and so that's an -- Right and so with trades that are now getting executed in matters of tens of nano seconds.
220 feet a few yards difference between how close your server is to and your your competitors server -- to the New York Stock Exchange server.
May mean you get the trade first probably -- mean you get to -- person you get to exploit the information first that's the kind of technology arms race.
Which is now aimed at the New York Stock Exchange and all the other change so how does how does one fix it Macon -- secure.
Well some of these kind of things don't happen you can't you you you you really you've done it you've.
There are so many things that are heard this we're not prepared for the technology changes that are coming so.
-- -- was just said.
One of the things that the SEC has done trying to stay up with the times to say okay great well it's fine for you to disseminate you regular corporations to disseminate information.
Through Twitter and FaceBook don't you know go ahead that's the modern world isn't like a newspaper and from that point -- -- -- troop.
But we see how easily these things can be manipulating and putting a second password a second layer of authentication on your Twitter can't.
Ain't gonna solve the problem right but here's the interesting point.
This thing only lasted a few seconds yesterday a minute or so because -- -- could look around -- no other news for agencies were reporting this news and therefore it was easy to.
To determine it was -- season.
What happens when a relatively thinly traded corporations account gets hacked and it put out some bad information about their earnings.
There's not going to be any place to go check that information there isn't going to be the same sort of universal.
Oh my god is that really true.
There's not going to be any other place to go look for it can mean so people -- it trade on it and they're gonna keep trading -- so you're gonna see levels of market disruption and volatility.
Arising out of these new SEC rules I don't think the SEC is even begun to think about yet.
A -- and it also shows that that very real.
-- -- -- I would play Havoc with the markets she is something that those who would wish to do with Tom would love to -- -- of noted that I've.
This is correct I've been on this issue for a long long time this is a real point of -- her ability people talk about the electricity grid and all that stuff and that's true too.
This idea that these high frequency trading programs can be manipulated lined up you could store.
A little landslide with some misinformation like we had yesterday -- that make you are smarting coordinator -- two or three different sources and you start the landslide like that.
And then you have what the people and security were -- force multiplier you wait for the market to sort of collapsed.
And then -- the terrorists turn on the juice and really pile on.
And you could cause massive economic dislocation massive losses.
And this is a huge problem people and not paying attention to and Wall Street generally to hedge funds.
The trading firms.
Do not have adequate layers of protection of their systems because hey it's not profitable to invest in that so they didn't do it.
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