Feb

4

Look at this chart. It's the Ibovespa Futures Contract (mini).


The (mini) lobagola move and subsequent extreme noise occurred in only ONE SECOND. The rest of the noise occurred in one minute.

The chart depicts 10 tick bars.

There was unprecedent volume.

The times and sales showed LINK, a HFT Institutional Brokerage Firm (now owned by UBS, and open only for institutions and foreign investors), as the solely buyer during the up move, and the main seller during the down move (during noise period).

Again, this took place in ONE SECOND. It was 10 A.M. (New York time), during the release of US economical numbers.

Talking with a wise Computer Science player, this is possible only if you have:

1. Hardware programming (chip);
2. Extreme co-location at the Exchange (he used the term "into the Exchange mainframe").

It's scares one to death, as reminds us the 2010 flash-crash (which sounded to me as a "market nuclear bomb test".)


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