Regulators probing legendary hedge fund’s secret trading code

It will be interesting to see how this plays out. I don't see it as a good precedent.

http://nypost.com/2017/06/21/regulators-probing-legendary-hedge-funds-secret-trading-code/

 

I wonder if the code will be leaked.

 

Someone already did. Check it out:

Code:

On dip In market:
    buy = True;

dip()

 

At the same time, how can we be sure that there isn't something fishy going on? Spoofing is just so common, and I see so much of it in the futures that its a joke to say its illegal, but still, if code is found that shows they purposefully do it, it could be a game changer.

 

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LOL =True; but works real well in up trending bull markets. Another reason many hate tek analysis, not so much in a doWn trending bear market. Best not to post this a lot LOL

 

No you just add a couple of extra lines:

On dip In market:
buy = True;

dip()

IF bearmarket:
On bump In market:
sell=True
bump()

 

In 2014 Obama and Holder put 6 Chinese hackers on the FBI most wanted list. They did that with a bit of fanfare because they had to look like they were "gettin 'er done". In 2015 Chinese hackers took the Security Clearance info on 20+ million federal employees LOL. The guy in charge of the security over that info said "nobody told me to secure it" [not making this up]. So yeah, I'd say Renaissance's worries are well founded.

 

But are they worried about what might be found... or just that someone else might steal their trading secrets?

Given that there is so much spoofing in the markets, I don't see how they could be getting by without it. I mean do they really look at data in such a much better way than anyone else?

I don't know anything about their strategy, or even what time frames they are trading in (ie. does speed play a factor in their trading), but I just don't think that when you have 1 or 2 companies that are dominating the field while other people close up shop that this means they are much smarter than everyone else. I think that anyone at the top of whatever they are doing has to be bending the rules somewhat.

I think it would be very easy to release code without it hurting what you're doing. All they have to do is put it all out of sequence, or release only bits and pieces to different individuals so that no one person has access to it all. Pro traders have been using multiple brokers in the same fashion so that no one broker had access to all the trades and could reverse engineer a strategy.

 

A few years ago was Toyota forced to allow inspection of their software related to unintended acceleration. Toyota was very afraid that their software would leak. So they allowed it, but set some conditions: the software would only be available on one specific computer, placed in a prepared room which had no internet connection or phone line. The inspectors were not allowed to bring in any storage device (e.g. USB sticks).

 

Although if you read the article regulators actually aren't asking to see Renn's code, they're just responding to a rulemaking proceeding. Talk about a misleading headline....and a bunch of you happy to be misled.