Why does CNBC believe two simultaneous purchases consists of an arbitrage?

Discussion in 'Trading' started by ogarbitrage, May 15, 2012.

  1. Video here

    CNBC cited Nanex research which highlights two simultaneous purchases, one for 1,300 ES contracts and another within the same millisecond for 260,000 shares of SPY. CNBC goes on to claim these two simultaneous purchases "create an arbitrage opportunity."

    Can anyone explain how exactly two simultaneous purchases create an arbitrage opportunity? The trash on this channel is just beyond belief.