Head Of “Holy Grail” HFT Firm Chief To Become President Of HFT-Beloved BATS Exchange

Remember Virtu: the “holy grail” HFT firm that epically Plaxicoed itself when, as part of its IPO prospectus, it effectively confirmed it was rigging markets when it showed a chart boasting that it had 1 trading day loss out of a total of 1238 days…

… which promptly led to an expedited inquiry into HFT market rigging, and Michael Lewis’ book exposing the HFT fraud for everyone, forcing Virtu executives to shelve their hopes to get even richer, and selling their equity to the common public?

Well, moments ago it was finally confirmed once and for all that Michael Lewis, and his assertion that the countless US exchanges only work on behalf of HFTs, by providing them glimpses of incoming blocks so the same vacuum tube parasites can frontrun major orders, was spot on, when the WSJ reported that Virtu’s head, Chris Concannon, will be appointed as president of BATS Global, aka DirectEdge, aka the exchange whose own IPO was ironically sabotaged by a stray HFT algo, aka the exchange that lost its previous head Bill O’Brien after he was caught lying, in an unforgettable segment, on CNBC by IEX’s Brad Katsuyama.

The result was O’Brien’s prompt termination, and a leaderless BATS. Until now, when in a dramatic example of the unprecedented collusion between predatory (HFT) client and predator-enabling (and HFT-pandering) exchange, in which the prey is any naive, witless order block that makes its way onto the exchange only to be frontrun with impunity and assure Virtu even more flawless trading days, we once again see just who calls the shots for America’s exchanges.

From the WSJ:

Virtu Financial LLC executive Chris Concannon will be appointed as president of BATS Global Trading Inc., an upstart Kansas City, Mo., firm that has grown into one of the country’s top stock-exchange operators, BATS said.

 

Mr. Concannon’s arrival coincides with the company “starting to set our sights on what to do next,” said Joe Ratterman , CEO of BATS, in an interview.

 

 “We came from nowhere nine years ago with 13 employees,” he said. “We’re now the largest exchange operator in Europe, first or second in the U.S. and completing a big acquisition… The company is scaling.”

Well of course, when the entire exchange is designed to benefit HFTs parasitism at the expense of retail and institutional order flow, how can it not grow?

Mr. Concannon, 47, has served as the president of Virtu, a high-frequency trading firm, since 2009. His appointment will be effective Dec. 15. He will fill a void left by William O’Brien, who was forced out of BATS in July amid cultural differences and a decision by BATS to settle allegations that one of its units gave improper advantages to high-speed traders. Those settlement talks, as reported previously by The Wall Street Journal, cover allegations related to Direct Edge Holdings LLC, the exchange operator Mr. O’Brien led before it merged with BATS last year.

 

* * * 

 

“I love this space and I love our markets,” Mr. Concannon said in an interview. “I’ll be very focused on growing the business.”

And vacuum tubes around the globe will be happy to give it to you Chris: after all where else can they frontrun everyone with such delightful ease, assuring them around 1 trading day loss in 4 years?




via Zero Hedge http://ift.tt/1x7RAp7 Tyler Durden

The Bullard Bulls#*t Is Back

In just one month, St.Louis Fed President Jim Bullard has eviscerated what little credibility he had with his desperate pleadings to the Dow-Data-Dependent Federal Reserve gods…. today we find out that there is “no need for more QE for now, the economy is in good shape” and 1400 Dow points higher than when it was crucial to “delay the end of QE.” What is more worrying is the fact that in the last 2 weeks of total market melt-up since Bullard spoke, earnings outlooks for Q4 have collapsed and macro data has done nothing but disappoint.

 




via Zero Hedge http://ift.tt/1tDZ2te Tyler Durden

When Colleges Abolish Due Process in Sex Disputes, Innocent Lives Are Ruined

HarvardAs a victim of Yale University’s rush to abandon
any pretense of fairness in sexual harassment cases, Patrick Witt
has quite a sad tale to tell. The college football player, NBA
hopeful, and Rhodes Scholarship candidate lost everything after
Yale mishandled an informal sexual harassment accusation against
him. Now Witt is a law student at Harvard University and he is
worried his new college is equally committed to trampling accused
students’ due process rights.

Witt recently penned a column for
The Boston Globe
detailing the travesty of justice that
ruined all his plans and put his life on hold. Relevant
excerpts:

Harvard’s new policies are substantially similar to those
already in effect at Yale, my alma mater. While an undergraduate
there, my ex-girlfriend filed an informal complaint against me with
the then-newly-created University-Wide Committee on Sexual
Misconduct. The committee summoned me to appear and styled the
meeting as a form of mediation. Its chairman, a professor with no
prior experience handling dispute resolution, told me that I could
have a faculty adviser present but no lawyer, and instructed me to
avoid my accuser, who, by that point, I had neither seen nor spoken
to in weeks. The committee imposed an “expectation of
confidentiality” on me so as to prevent any form of “retaliation”
against my accuser.

I would say more about what the accusation itself entailed if
indeed I had such information. Under the informal complaint
process, specific accusations are not disclosed to the accused, no
fact-finding takes place, and no record is taken of the alleged
misconduct. For the committee to issue an informal complaint, an
accuser need only bring an accusation that, if substantiated, would
constitute a violation of university policy concerning sexual
misconduct. The informal “process” begins and ends at the point of
accusation; the truth of the claim is immaterial.

When I demanded that fact-finding be done so that I could clear
my name, I was told, “There’s nothing to clear your name of.” When
I then requested that a formal complaint be lodged against me — a
process that does involve investigation into the facts — I was told
that such a course of action was impossible for me to initiate. At
any time, however, my accuser retained the right to raise the
complaint to a formal level. No matter, the Committee reassured me,
the informal complaint did not constitute a disciplinary proceeding
and nothing would be attached to my official record at Yale.

Nevertheless, Witt’s employer, the Rhodes Trust, The New
York Times
, and the public at large eventually found out about
the accusation. He was disgraced but unable to rectify the matter,
since the claim was never investigated or adjudicated in any
logical way. Witt’s dream of playing in the NFL was crushed, he was
forced to withdraw his Rhodes Scholarship candidacy, and his
employment ended.

Witt warns that “the destructive power that Yale’s and now
Harvard’s new sexual misconduct policies wield is immense and
grossly underestimated.” For what it’s worth, 28 members of
Harvard’s law faculty
agree
—and signed a letter saying so. Sexual harassment and rape
are serious issues that demand serious responses. They should not
be dealt with by kangaroo courts or extra-legal inquisitions.

Read Witt’s full story
here
.

from Hit & Run http://ift.tt/1uq6yKk
via IFTTT

Gary Johnson: “I’ll Run in 2016 to Provide Libertarian Option” That Rand Paul Doesn’t Offer

Well there’s
already good news on today’s Election Day. The 2012 Libertarian
Party candidate for president, former New Mexico Gov. Gary Johnson,
has announced that he’s running for the 2016 LP nomination.

He directly addressed how his views differ from Sen. Rand Paul
(R-Ky.), the most libertarian likely candidate from a major
party:

“On half the issues he’s right, but on the whole social issue
thing…. Look, libertarians are flaming liberals when it comes to
social issues, when it comes to civil liberties. A woman’s right to
choose, drug reform, immigration, marriage equality. He’s not
there.”

Johnson, who ran with Judge Jim Gray, pulled about 1.3
million votes and 1 percent of the overall total. That was the best
showing for the LP since 1980.

In an interview with Newsmax, Johnson laid out his reasons to
campaign again. Here’s a snippet of the interview (which includes
video and a transcript):

“The whole election is a big yawn. Who cares who wins,
because nothing’s really going to change? It’s like a debate
between Coke and Pepsi. They’re debating over which one tastes
better,” he said.

“They start talking about tax policy, Coke wants to reduce the
corporate tax rate to 30 percent, and Pepsi wants to drop it to 28
percent. 

“Where’s the libertarian viewpoint, which says do away with it
completely? Do away with income tax, corporate tax? Abolish the
IRS. If you’re going to replace it with anything, replace it with a
national consumption tax. That’s real meat on the bones. I just
don’t see any meat anywhere.”…

“People are clamoring to hear good ideas as opposed to the
lesser of two evils . . . Either the Democrats are going to win or
the Republicans are going to win, but the losers are all of us out
here as citizens that really do want meaningful change, and none of
it’s happening. There’s no dialogue regarding meaningful
change.”


More here.

Back in 2012, Reason ran a series of articles, each making “the
libertarian case” for the Democratic, Republican, and Libertarian
presidential contender. I authored the one arguing in favor of
Johnson.
Read that (and the others) here.

Back in 2011, Reason TV followed Johnson as he talked with
Occupy Wall Street protesters in NYC. Take a look:

from Hit & Run http://ift.tt/1uq6ASg
via IFTTT

Now Available: Damon Root’s New Book Overruled: The Long War for Control of the U.S. Supreme Court

Today is the official release
date for my book Overruled: The Long War for Control of the
U.S. Supreme Court
. It’s available at
Amazon
,
Barnes & Noble
, and everywhere else books are sold
online.

Here’s what the early reviewers are saying:

“A riveting account of the raging debate over the future of our
Constitution between those who contend that judges must ‘defer’ to
legislatures and those who view the judiciary as an equal branch of
government whose mandate is to secure the rights and liberties of
the people by holding government to its just powers. Root reveals
the inside story behind the surging movement to restore
constitutionally-limited government. I loved this book.” —Randy E.
Barnett, Carmack Waterhouse Professor of Legal Theory, Georgetown
University Law Center, and Director, Georgetown Center for the
Constitution

“An intriguing account of judicial and economic policy
reflecting controversies within conservatism over civil rights and
other issues.”—Kirkus Reviews

“In Overruled, Damon Root explains a divide in judicial
theory about which I was not only ignorant but mistaken. ‘Judicial
activism’ is wrong. Right? It gives unelected authorities
minority power to impose rules and regulations that violate
individual rights without a democratic process. Wrong. It’s
‘judicial deference’ that gives elected authorities majority power
to impose rules and regulations that violate individual rights
within a democratic process. And to further confuse the issue
judicial activism and judicial deference have, by turns, been the
darlings of both Liberals and Conservatives. Fortunately, Damon
Root explains it all.”—P. J. O’Rourke, journalist and H. L. Mencken
Research Fellow at the Cato Institute

“The conflict between judicial activism and judicial restraint
has been part of the Supreme Court since its inception. In this
book, Root, senior editor at Reason magazine, takes a
fresh look at activism vs. restraint by placing judicial
interpretation at the center of the ideological disagreements
between libertarians and conservatives that have taken place
throughout U.S. history…. The segments about gun control and the
Affordable Care Act are especially compelling.”—Library
Journal

“Damon Root, whom I have had the pleasure of interrogating on
television, understands the concept of personal liberty in a free
society better than many members of the legal profession; and he
knows, too, that the Constitution was written by men who properly
feared the numerous insidious ways that government assaults our
natural rights. In Overruled, he shares his knowledge and
uncanny ability to explain liberty lost with his readers. This book
is nothing short of a lucid and brilliantly crafted history of the
Framers’ fears coming to pass at the hands of a judiciary faithless
to first principles. Read it today so you can anticipate and
understand the judicial contortions coming tomorrow.”—Hon. Andrew
P. Napolitano, Senior Judicial Analyst, Fox News Channel,
Distinguished Visiting Professor of Constitutional Jurisprudence,
Brooklyn Law School

Perhaps you’d like to peek inside the book and read an excerpt?
Amazon
will let you do it
.

from Hit & Run http://ift.tt/1uq6ydg
via IFTTT

About That Soaring Dollar: US Trade Deficit Excluding Oil Has Never Been Worse

Remember that in a beggar thy neighbor world, where currency warfare has once again broken out between the US, Europe and Japan, for every winner there is a loser. In this case, the loser is the one country that has decided that a strong currency is a great thing for its economy (if only for the time being): that would be the US. There is a problem with that, however: because in Q3 the trade deficit rose by 7.6%, virtually identicaly to how much stronger the US Dollar basket, the DXY, increased by in the same period which surged by 7.7% the most since Q3 2008 when Lehman blew up!

So why is this relevant? Because as the chart below shows, US trade excluding Petroleum, just tumbled to $48.3 billion, essentially matching the worst print in the history of the series, suggesting that portrayals of the US as a resurgent export powerhouse are completely erroneous, and that instead the US is as big a net importer of goods and services, aside from the Shale revolution of course, as ever.

And the other side of the coin: if and when the Saudi crude crunch finally starts taking out shale capacity slowly at first, then very fast, watch how the headline trade balance line and the line ex-Oil slowly but surely converge, as the US reverts to its status as the world’s biggest net importer once more.

The bigger question, however, is how much longer will the Fed stand on the side and pretend not to notice that once again the surging USD (because, snicker, the Fed will never do QE again) is about to crush the US economy yet again. And woe to the spinners if this winter there is no heavy snowfall on which to blame the resultant GDP collapse.

One thing is certain: if the trade deficit surge continues, and Q4 GDP tumbles to 1% or less, the Fed will be right back at the frontlines, CTRL-Ping the US economy right back into “beggar thy global neighbor” competitiveness.




via Zero Hedge http://ift.tt/1x7yIqz Tyler Durden

A.M. Links: Election Day 2014, 1 WTC Opens for Business, France Has Last UFO Hunter Team in Europe

  • UFOGovernor Chris Christie (R-N.J.), who was
    re-elected last year in a heavily Democratic state, is in
    Pennsylvania
    campaigning for Governor Tom Corbett (R-Pa.), who
    is expected to lose handily today in the fairly evenly divided
    state. Voters all over the
    United States
    are going to the polls to vote for candidates for
    governor, Congress, and on various ballot initiatives. The
    White House
    is pre-emptively blaming unhappiness on what’s
    expected to be a poor showing by Democrats today.
  • One World Trade Center in
    New York City
    will receive its first tenants Monday.
  • The United Kingdom’s new spy chief,
    Robert Hannigan
    , says privacy is not an “absolute right” and
    insists on a “new deal” that will permit government more control
    over technology companies, for safety.
  • The European Union
    condemned “illegal” elections in eastern Ukraine held by
    pro-Russian separatists and won by pro-Russian separatists. The
    winners are expected to be sworn in today.
  • Plans are moving forward in Israel
    to build 500 new settler homes in East Jerusalem.
  • France, which has the biggest space agency in Europe, also has
    its only team of government UFO hunters.

Follow Reason and Reason 24/7 on
Twitter, and like us on Facebook. You
can also get the top stories mailed to you—sign up
here
.

from Hit & Run http://ift.tt/1Efo597
via IFTTT

Q3 GDP Alert: US Trade Deficit Worse Than Expected As Exports, Goods Imports Drop

This could be a problem for the escape velocity believers: the US trade balance printed its biggest deficit since April at -$43.0bn (missing expectations of -$40.2bn) bn, and jumping 7.6% from $40 billion in August. This reflected a decrease in exports (but, but decoupling!?) though imports of goods also slid, suggesting not only is there slack in foreign demand for US goods and services, but the US manufacturing sector is also undergoing to a contractionary realignment. Someone please notify the (seasonally-adjusted) ISM that Q3 GDP estimates areabout to tumble on this latest non-confirmation of hopium.

Some of the highlights:

  • *U.S. TRADE DEFICIT WITH CHINA HIGHEST EVER ON RECORD IMPORTS
  • *U.S. IMPORTS LITTLE CHANGED AT $238.6 BLN ON CHEAPER OIL
  • *U.S. EXPORTS DROP 1.5% TO $195.6 BLN ON OIL, CAPITAL GOODS
  • *U.S. IMPORTS OF PETROLEUM WERE LOWEST SINCE NOVEMBER 2009

 

 

And the details:

The U.S. monthly international trade deficit increased in September 2014 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $40.0 billion in August (revised) to $43.0 billion in September, mainly reflecting a decrease in exports. The previously published August deficit was $40.1 billion. The goods deficit increased $2.4 billion from August to $62.7 billion in September; the services surplus decreased $0.6 billion from August to $19.6 billion in September.

Exports

Exports of goods and services decreased $3.0 billion in September to $195.6 billion, mostly reflecting a decrease in exports of goods. Exports of services also decreased.

  • The decrease in exports of goods was more than accounted for by decreases in industrial supplies and materials, in capital goods, and in consumer goods. An increase in foods, feeds, and beverages was partly offsetting.
  • The decrease in exports of services mostly reflected decreases in travel (for all purposes including education) and in transport, which includes freight and port services and passenger fares. Changes in the other categories of services exports were relatively small and nearly offsetting.

Imports

Imports of goods and services increased $0.1 billion in September to $238.6 billion, reflecting an increase in imports of services. Imports of goods decreased.

  • The increase in imports of services mostly reflected an increase in transport. Changes in the other categories of services imports were relatively small.
  • The decrease in imports of goods was more than accounted for by decreases in industrial supplies and materials, in capital goods, and in automotive vehicles, parts, and engines. An increase in consumer goods was partly offsetting.

Goods by geographic area (seasonally adjusted, Census basis)

  • The goods deficit with China increased from $28.5 billion in August to $31.2 billion in September. Exports decreased $0.1 billion to $9.8 billion, and imports increased $2.6 billion to $41.0 billion.
  • The goods deficit with Canada increased from $2.7 billion in August to $4.0 billion in September. Exports decreased $0.6 billion to $26.3 billion, and imports increased $0.7 billion to $30.3 billion.
  • The goods deficit with Germany decreased from $7.2 billion in August to $6.2 billion in September. Exports increased $0.1 billion to $4.2 billion, and imports decreased $0.8 billion to $10.4 billion.




via Zero Hedge http://ift.tt/1xXv9mT Tyler Durden

Oil Slumps To 3-Year Lows, Bond Yields Tumble, Stocks Stumble

Overnight saw the weakness in the crude complex continue with WTI dumping to its lowest since October 2011 at $75.84. Treasury yields tracked crude lower and 30Y yields are now down 4bps on the week (having been up 5bps at their peak yesterday before Saudi Arabia’s pricing decision). Stocks are sliding in the pre-market but have room to fall to catch down to oil/bonds implied weakness. Gold, silver, and copper are also lower even as the dollar slides lower.

Stocks catching down to Bonds/Oil weakness

 

Don’t forget oil’s plunge is as much lack of demand as over-supply by desperate oil producers

 

As Futures tried to scramble back to unch from Saudi news overnight but failed

 

Chart: Bloomberg




via Zero Hedge http://ift.tt/1xXvaqP Tyler Durden

One More Thing About That Viral Street Harassment Video: Its Creators Don’t Want to Imprison Catcallers

HollabackThe release of that viral street
harassment video
last week prompted all kinds of interesting
reactions:
some
took the strong this-is-awful-and-must-stop position,

some
agreed street harassment was bad but not everything in the
video qualified,
others
criticized  the problematic racial aspects of the
video, while still
others
wondered what was so wrong with black and Latino men
giving compliments to women on the street.

As a libertarian, I had nothing special to say about the video
at first—harassment is bad, leave people alone, etc.— but then
the conversation took a predictable turn. Should the government
ban catcalling and police street harassment more aggressively?

Some people think so. The New York Times featured
a discussion on the topic. Here was the opinion of one legal
scholar, Northwestern University’s Laura Beth Nielsen:

The police may largely ignore harassment on the street because
men often do not understand how pervasive it can be, but most
importantly because there are no laws being violated in such
encounters. About two thirds of women report that they hear such
comments every day, but men’s estimates of the frequency of such
remarks is significantly lower. All of the women I
interviewed for my
research
reported changing their routes, behavior,
transportation or dress to avoid street harassment.

I’d propose a law that would prohibit street harassment and
would also be consistent with our First Amendment jurisprudence
about other kinds of hate speech (cross-burning
in Virginia vs. Black
) that intimidates, harasses and
perpetuates inequality. It would allow states and cities to
recognize street harassment for what it is: physical and
psychological acts that intimidate, exclude, subordinate and
reinforce male dominance over women.

Empower the government to arrest people for giving unsolicited
greetings in public? Egads, what a terrible idea! (It’s as if
Nielsen was cognizant of the fact that libertarians were feeling
left out of this discussion and wanted to find a way to include us.
That’s nice of her, wrong though her opinion is.) New York City
cops certainly don’t need another reason to arrest black and Latino
men on the streets, for one thing. For another, trusting agents of
the state to correctly distinguish between protected and
unprotected speech is a tall order in the most favorable of
circumstances, and would only get worse if a broad new category of
speech was outlawed—to say nothing of the unlikelihood of such a
law passing a First Amendment test.

“Street Harassment Shouldn’t Be a Crime,”
agreed
Lizzie Crocker of The Daily Beast. Crocker
chided Hollaback!, the organization behind the video, for
supporting efforts to legislatively prohibit such behavior and
claimed that “according to Hollaback’s mission statement, the group
is interested in modifying the law to punish offenders (and raising
significant First Amendment concerns).”

I poured over Hollaback!’s
website
looking for evidence of this claim and was prepared to
skewer the group for pushing a pro-censorship and
pro-criminalization agenda. Alas, I found nothing of the sort.
Hollaback!’s strategy revolves around building a public awareness
campaign to shame street harassers into changing their ways. The
group does not specifically call for any sort of legislative
action, as far as I can tell.

To clarify the matter, I reached out to Emily May, co-founder
and executive director of Hollaback! She forwarded me a column
written by the group’s deputy director, Debjani Roy, about
“Finding Effective Solutions to Street Harassment”
:

When it comes to combating street harassment, increasing
criminalization is not the answer.

The criminal justice system disproportionately targets and
affects low-income communities and communities of color, as
evidenced by more recent policies such as New York City’s Stop and
Frisk program and other degrading forms of racial profiling. Our
objective is to address and shift cultural and social dialogues and
attitudes of patriarchy that purport street harassment as simply
the price you pay for being a woman or being LBGTQ. It is not to
re-victimize men already discriminated against by the system.

So there you have it. Hollaback!—the organization behind the
viral street harassment video and primary activist group fixated on
this issue—does not support criminalization as an answer to the
problem. No one else should, either.

from Hit & Run http://ift.tt/1x7qYov
via IFTTT