Norwegians convicted for outwitting trading system - OVERTURNED

rsh01 · May 3, 2012

Saw this on ET forum:

"Two Norwegian day traders have been handed suspended prison sentences for market manipulation after outwitting the automated trading system of a big US broker.

The two men worked out how the computerised system would react to certain trading patterns – allowing them to influence the price of low-volume stocks..."

orig story
Norwegians convicted for outwitting trading system - FT.com

(if you go via google you do not have register: http://www.google.co.uk/search?q=no...s=org.mozilla:en-US:official&client=firefox-a)

The conviction was reversed on appeal 02/05/2012:
http://united-europe-news.blogspot.co.uk/2012/05/uk-finance-norways-high-court-landmark.html

wackypete2 · May 3, 2012

Just goes to show once again how the big guys are protected while the little guys get convicted. They beat the computer that was trying to beat them at the same game.

Peter

wackypete2 · May 3, 2012

conviction was overturned today.
click below to go through google

Supreme Court justice Bergljot Webster explained the not guilty verdict, saying that while the defendants did use the system to their advantage, they did so with full transparency which “would indicate that the ... actions should not be punished.” -

Thank goodness for a sensible judge who ruled the actions they took were transparent and generally accepted in the marketplace.

Peter

wackypete2 · May 3, 2012

lol, I just noticed OP edited his post to include overturned conviction

Peter

rsh01 · May 3, 2012

Re: Norwegians convicted for outwitting trading system - overturned

wackypete2 said:
Just goes to show once again how the big guys are protected while the little guys get convicted. They beat the computer that was trying to beat them at the same game.

Peter

their conviction has been overturned - had to edit the post, found the link straight after. (good skills by moi)

sure there was a guy who did something similar but on much basic level & got heavily fined? think it was in the uk - cannot find the link.

he wld lift the offer / hit the bid for small amount with his broker early morning when v illiquid: for example spread was 12p@19p, & he wld sell 20 shares @ 12p, and would have a bid order for 5000 share futures with a SB @12 knowing it wld fill as it used last traded price?? selling them all later in day when liquidity increased & spread was 15/16. so the SB was dumb but the guy gets fined.

rsh01 · May 3, 2012

wackypete2 said:
lol, I just noticed OP edited his post to include overturned conviction

Peter

yep - give it to me, i deserve it.

rsh01 · May 3, 2012

wackypete2 said:
conviction was overturned today.
Peter

just need aster1 to come in now & give me a lesson on posting threads..

6am · May 3, 2012

I am angry. If you lose it is OK. If you win they will investigate you for two years and in the best case scenario find you not guilty. They have got 2 years of hell for winning $28000 dollars. I want justice for these guys. Apology from IB and a heavy compensation.

NVP · May 3, 2012

6am said:
I am angry. If you lose it is OK. If you win they will investigate you for two years and in the best case scenario find you not guilty. They have got 2 years of hell for winning $28000 dollars. I want justice for these guys. Apology from IB and a heavy compensation.

dont get angry.....get even

the hare · May 3, 2012

Re: Norwegians convicted for outwitting trading system - overturned

rsh01 said:
sure there was a guy who did something similar but on much basic level & got heavily fined? think it was in the uk - cannot find the link.

This is the guy, IIRC he was fined over a million sterling for exploiting someone elses stupidity !

Scots trader fined £1m after betting on London Stock Exchange - The Daily Record

To fine someone for thinking doesnt quite seem right.

scose-no-doubt · May 3, 2012

seem.

the hare · May 3, 2012

scose-no-doubt said:
seem.

thank you kind sir. If only my English teachers had shown such dedication

scose-no-doubt · May 3, 2012

It's the only thing I'm good for around here. Can't really help out any other way - and I've been proven sh*t at it recently too.

Lulz can only get me so far.

Lord Flasheart · May 3, 2012

Re: Norwegians convicted for outwitting trading system - overturned

the hare said:
This is the guy, IIRC he was fined over a million sterling for exploiting someone elses stupidity !

Scots trader fined £1m after betting on London Stock Exchange - The Daily Record

To fine someone for thinking doesnt quite seem right.

Im confused by what he did.He beat the companies and seemed to do nothing wrong.If they are saying he did wrong,then he should be fined the whole lot and more.How can they go 1/2 way?.anyone know exactly what he did? How can small bets at start of day influence the day price on a regular bases

scose-no-doubt · May 3, 2012

He pushed low vol stocks up through the real market and placed a larger spread bet to benefit from the move up as the SB markets are priced from real feeds innit bruv.

Lord Flasheart · May 3, 2012

scose-no-doubt said:
He pushed low vol stocks up through the real market and placed a larger spread bet to benefit from the move up as the SB markets are priced from real feeds innit bruv.

thanks,thats hardly illegal,they dont deserve their money back,if they lay a spread thats their problem

6am · May 3, 2012

scose-no-doubt said:
He pushed low vol stocks up through the real market and placed a larger spread bet to benefit from the move up as the SB markets are priced from real feeds innit bruv.

So he turned the table around and became THE marketmaker. Why did SB complain?? :cheesy:

scose-no-doubt · May 3, 2012

Not really he just took advantage of the SBs pricing mechanism. If he was trading in big enough size (30k a week lol) then they may not of been able to hedge their own exposure without influencing price further and it may have had undesirable effects.

dazzer_fx · May 3, 2012

scose-no-doubt said:
It's the only thing I'm good for around here. Can't really help out any other way - and I've been proven sh*t at it recently too.

Lulz can only get me so far.

Why not try and 'hone' your skills

scose-no-doubt · May 3, 2012

I've spent too long trying to home them

Norwegians convicted for outwitting trading system - OVERTURNED

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