Traders Caught Using NASDAQ Exploit To Manipulate Silver Prices

Silver Price Manipulation Caught Red HandedHedge funds caught red-handed using flaws in the NASDAQ market exchange to manipulate the price silver using high-speed computer trading algorithms.

Despite documented flaws in the way market exchanges handles high speed trades at high volumes, which are attributed to the DOW flash crash, electronic trading systems still have not been patched to fix the issue.

The vulnerability stems from bad timestamps assigned to orders when traders flood the system which causes trades to executed on quotes before they even yet exist in the system.

Earlier today high frequency traders were caught in act by NANEX taking advantage of the flaw to exploit the NASDAQ silver ETF by barraging the system with a whopping 75,000 trades per second.

The exploit then triggered other trading robots to execute trades based on the high volume of trades quickly plummeting silver price.

Zero Hedge reports:   (Continue story)

Posted on March 23, 2012, in Uncategorized. Bookmark the permalink. Leave a comment.

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