Jim’s Mailbox

Posted at 9:08 AM (CST) by & filed under Jim's Mailbox.

If this is for real it is the start of a trend we have all hoped for. Slowing down the Process to Perdition is meaningful.

Jim

I don’t see this really helping too much…what needs to be done is restrict HFT from holding lion shares of anything.

JB

Futures Exchange To Introduce Gold, Silver “Speed Bump” To End HFT Manipulation
May 17, 2019

No sooner had we covered the battle of high frequency traders physically moving infrastructure and microwave towers to gain nanosecond advantages, that we learned that Intercontinental Exchange (ICE) has planned on launching the first ever “speed bump” for the US futures market that would negate some of these advantages. Despite two of the CFTC’s five commissioners disagreeing with the decision, the exchange still looks set to impose a split second delay on some trades, according to the Wall Street Journal.

Those not in favor of the decision claim that the “speed bump” would unfairly punish firms that rely on their speed advantage. Those in favor, say that it’s about time someone did something to stop the HFTs from frontrunning everyone in the futures market. Which is also why some of the largest high frequency trading firms are vocally opposed to the plan.

As part of the proposed speed bump, the ICE is looking to introduce a 3 millisecond pause before executing some trades in its gold and silver futures contracts. Trading in those contracts is relatively tiny, as most gold and silver futures trades take place at the CME Group. However, traders have been watching this decision because of the precedent it could set.

The CFTC had a chance to block the proposal within 90 days, but that period ended on Tuesday. Now, ICE is free to do as it pleases. The CFTC’s Division of Market Oversight said it’s going to watch carefully to analyze the impact of the new “speed bump” saying it “does not view the certification of the ICE Rule as establishing a precedent with respect to the legal and policy merits of speed bump functionalities generally.”

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Jim,

I bring this point up many times in our Saturday talks.

Dave

“Cultural Schizophrenia”: US Media No Longer Reports Facts, But Appeals To Emotions
May 17, 2019

Authored by Mac Slavo via SHTFplan.com,

The mainstream media in the United States has made a shift in the past few decades.  Now, they appeal to emotions as opposed to reporting the facts. This “cultural schizophrenia” is tearing the U.S. apart at the seams.

Based on the conclusions to a RAND Corporation study, the mainstream media is actively sowing discord in American society, award-winning journalist Chris Hedges tells RT. The media is focusing on making two sides hate each other instead of reporting on the facts, and the majority of the public is unaware and doesn’t care that their minds are being manipulated by their own emotional responses.

The study, which was released by RAND earlier this week, states that between 1987 and 2017, news content has shifted from event- and context-based reporting to coverage that is “more subjective, relies more heavily on argumentation and advocacy, and includes more emotional appeals.” According to RT,  prime-time cable news shows and online journalism lead the way in this shift to emotional and hate-based rhetoric. It has been noticed in print journalism as well, the government-funded think tank concluded.

This is contributing to what RAND termed “Truth Decay.” This is described as a shift away from facts and analysis in public discourse.

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