rogue algorithm brings down asx?

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    Anyone want to bet this is a rogue algorithm Bot released by a bank or broking house to probe the system?

    How many politician heads have to be banged together to get them to listen to reason regarding the insanity of algorithmic trading.

    Now in the USA, we have Algorithmic Corporations (AC), entire companies run only by computers (yeah, you can google it).

    A large majority of algorithms released on to the ASX are viruses, they use viral code, viral logic, and perform extreme viral functionality in order to secure a profit (and this is legal).

    Ok, so there are some basic algorithms also released that simply break up large orders, but these are now being superseded by neural networks and artificial intelligence systems.

    The ASX does not have the policies or procedures or technical knowledge to combat these extreme invasions.

    We do not think that the problem on partition 3 today is a hard disk crash because it would automatically cutover to a mirrored server, it is therefore more than likely to be rogue software.

    The ASX does not require the organisations who are licensed to use Bots and algorithmic software on to the servers, to submit the Bot for analysis, testing and licensing prior to releasing their software on to the ASX servers.

    Every day the ASX computers have literally hundreds of Trojans and Worms, and some of the most sophisticated viral activity, just wandering the servers at will, hidden and reporting surrepticiously back to their Bot masters.

    Some of the organisations writing these algorithms are now related to crime organisations, this is becoming white collar crime at it's most sophisticated, something the Australian Federal Police should also be monitoring 24/7, though we would also suspect that they would also be technological novices compaired to the geniuses who are writing some of the neural net and AI interfaces that are now embedded in Bot and software algorithms.

    The ASX does not know what even 1 percent of the software released on to their systems is actually doing when it is released.

    As for the Singapore-ASX merger, well on January 8 the Singapore exchange announced plans to bring in a trading platform based on the same Genium Inet system that the ASX is now running.

    So what does this mean? It means all the very sophisticated white collar crime gangs of Asia will then have access to your buying and selling activity on the ASX, and they can not wait to release their algorithms on to a system that is basically a free-for-all and not policed, it will be like taking candy from a baby.

    And for those non-believers, a couple of examples.

    Last year the NYSE Euronext, the trans-Atlantic regulatory body that monitors stock trading, fined Credit Suisse trading division for failing to monitor a computer trading algorithm that misconducted hundreds of thousands of stock transactions (google it).
    And in January 2010, a malfunctioning algorithm accidentally traded 200,000 futures contracts to itself.
    And last year, the London Stock Exchange shut down after a rash of computer-generated orders overwhelmed the system.

    And these are only the tip of the iceberg that we are actually permitted to hear about, what is actually going on to those ASX computers would terrify us.

    There is no regularly organisation responsible for monitoring traders or the software they release on to the ASX!

    If you do not wish to lose most of your money on the ASX over the next decade, here are a few suggestions.
    1. Contact your local politician and complain (over and over again).
    2. Band together in the hundreds, form a licensed broking company, hire brilliant Bot/viral software writers, and fight back (by releasing your own hidden harvesting software to gather your profits, while at the same time releasing AI and neural software that tracks down other Bots and takes-them-out).
    3. Buy Real Estate.
    4. Retire.

    And be prepared for the ASX, the government, every bank and every broking house to tell you that it was not a rogue algorithm that brought down the ASX.
    Let's see how they dress this up.
    When it happened to us, we would always try and have the user believe it was a hardware issue, hardware is something solid, everyone has a car that breaks down, so everyone can relate to this, it is the cleanest and most believable excuse, and it is amazing how many times I.T. professionals can get away with it.

    Rogue Computer Algorithms threaten stock markets - Popular Science

    Good luck, we are going to need it.

    Gw
 
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