“The stock market is rigged.” The arrangement that “for profit” exchanges had seemingly struck with high frequency traders was no real secret. Wire into the network, beat the orders by a nano second, front run the flow. If the flow is to “buy”, lift the offer (front run) and then quickly reoffer.  Maybe make a tenth or more per share.  Doesn’t seem like much, until millions of shares are involved. Quarter after quarter certain trading firms registered performance without a single losing day.  Remarkable. Bernie Madoff would be proud. New to the securities world in the past decade are two very important developments which have created this special nexus.  There are exchanges willing, apparently, to do anything for a profit.  And there is order routing via electronic platforms that allow for a certain “advantage” to some. The advantage is seemingly allowed by the exchanges because those who utilize...(Read Full Post)