Skip to main content
Black Listed News
Trending Articles:
Trending Articles:

How the Stock Market Is Rigged, According to a Robo-Trading Whistleblower

Published: November 13, 2013
Share | Print This

Source: Motherboard

“If you’re on Wall Street, you would just assume that you’re being ripped off, unless you were the one doing the ripping off,” says Dave Lauer, who has helped build robotic systems at top firms like Citadel.

This is the opening of The Wall Street Code, a new documentary on the mysterious and sometimes incomprehensible world of high frequency trading produced by Backlight, a Dutch public broadcasting company. The focus of the documentary isn’t on Lauer, who has testified as an expert at a Senate Committee Hearing on HFT, but on Haim Bodek, a "genius" algorithm architect who dared to break Wall Street’s notorious omerta, the industry’s unwritten rule of silence and secrecy.

Lauer, for instance, refuses to discuss the details of his past work. “I can’t get into that,” he says, breaking a smile. “I’m terrified of Citadel lawyers.”

Lauer left the scene after the 2010 Flash Crash, in which the market dropped 1000 points in minutes, only to bounce back again—an event, he says, that would irrevocably change him.

Known as the Algo Arms Dealer, Bodek reveals not only the ins and outs of how Wall Street traders cash in on the marketplace with an advanced amalgamation of speed and artificial intelligence, but also details of how the market is rigged. Bodek would report his findings to the Securities and Exchange Commission, which, on Wall Street, almost never happens, at least from a well-known insider.


Share This Article...

Emigrate While You Still Can! Learn more...

More Blacklisted News...

Free Newsletter
Blacklisted Radio
Blacklisted Nation
On Twitter
On Reddit
On Facebook
Blacklisted Radio:
Podcasts on Youtube
Podcasts on Demand
Podcasts on Spreaker
Podcasts on Stitcher
Podcasts on iTunes
Podcasts on Tunein

Our IP Address:



Calling for Contributors!

Got something to say?
We want to hear from you.

Submit your article contributions and participate in the world's largest independent online news community today!

Contact us today!

BlackListed News 2006-2017