Market Maker Collusion

Discussion in 'Trading' started by kean, Feb 6, 2003.

  1. add to that, turning NX off (on some platforms NYSE+)

    that returns the rigged game into their hands and away from the computerized mechanization of trading....
    #21     Feb 6, 2003
  2. "There's no telling where the ripples from this storm will end. As of today, the President's Aide, the Secretary of SNow,tate, the Deputy FBI Director and countless others have either resigned or been arrested.

    The questions viewers have for you, Greg Granthum, is "Who is Darby Shaw"? Most viewers think that you've made her up, as a ghost writer just to be able to break this story."

    "Well, (commentator), she's real".

    Hey guys, whether or not we believe, or find it unbelievable, what was described is true. Most of us have seen this pattern, especially when we have enlarged the Level II display to see 12 or 16 levels deep. We have seen these patterns.

    Thanks for bringing this to the fore.

    Now, what do we do about it?
    Trade it?, Report it (to whom?)?, Watch it?, Fade it?, What?
    #22     Feb 7, 2003
  3. My contact inside ****** ****** tells me that the 'circle' are now about to force this board to close, because certain members have revealed 'insider' secrets. The have signalled this by forcing downtime suffered on elite - they are trying to make it look like a gradual traffic-related failure, and then it will just... vanish.

    The other important *** ** **** *** ***** ****** * **** **** *** * ***** ****** ** * **** ***uncontestably proves that *** * * ***** ** *** * **** * * within * days.

    BTW, the aliens are bringing Elvis back for a visit, so he can entertain the troops in iraq.
    #23     Feb 8, 2003
  4. its a lot tougher for a specialist to do this to an online trader but they will just sit there and penny you to death for jumping in the spread, esp. during low volume slower times, of course when you really need to make a scalpier type of trade...
    #24     Feb 8, 2003

  5. how about it, gotta love those 1x1's too
    #25     Feb 8, 2003
  6. there are def. a lot of games played on the books, level2 etc...
    ive always seen that to and wondered if someitmes it could be signals but never found a pattern and most of them 99% arent like someon else said they could be a number of things as simple as just a test. if you found a pattern though i would just keep my mouth shut and make as much as possible.
    but honestly, does anyone still make money rading level2 or open book etc... different from reading tape, i read tape as a succesful strategy, but dont know anyone that rads level2, that is really outdated and doesnt work...
    #26     Feb 8, 2003
  7. I have been trading level II now for 5 months. After a while you recognize patterns and know what will usually happen next. I made $4000 this week using a scalping/discretionary style. There is no easy money reading level 2. Its just professional against professional. Just be better than the other guy.
    #27     Feb 8, 2003
  8. I don't understand the question: market makers collusion is strictly forbidden by law. In fact they can even go to jail why would they risk that or law is just for apparence :) :p :D
    #28     Feb 8, 2003
  9. One outstanding Head Trader on our desk once said that:
    "those MM's were able to PAY that Billion Plus fine that was charged against those firms". He further said: "now, if they can pay a combined fine for collusion in trading patterns like that from handling the 3/8's spread on most NASD stocks, then WHAT did they REALLY earn?"

    Simply put, when they would charge for odd lots (less than 100 shares) and mixed lots (uneven shares not rounded to 100 share lots), and upcharge each trade by over 1/8th, then add to that the spread that they created between the articifial Bid/Ask then that's a whole lotta loottaah.
    #29     Feb 9, 2003
  10. Last year our group was trading nasdaq stocks and a guy in the group thought he saw a signal. When the inside island quote was 5-10 cents away from best bid/offer, something would shave it by a tenth of a penny over and over again to create a flashing since the new shaved price would come up under it's own color on the level 2 display. This guy was sure that was a signal that the stock would go to that price. Sometimes it would work, sometimes it wouldn't. But he kept bringing up how he thought he found a signal. He didn't know that myself and the trader next to me would do this over and over to screw with him. All we had to do was find an island 10 cents away during the slow times when we were board, shave the price by a tenth of a penny, and then hit enter,cancel,enter,cancel, over and over to create his newfound collusion "Signal". It was great hearing him make a fuss over it.
    #30     Feb 9, 2003