Thursday, June 22

Spy v. Spy

Digital Straight Talk:

?Fiery Missives? and Other Emotional Tactics Driving Net Neutrality Debate

... Last week, Google?s top Washington lobbyist disclosed that the company had configured its search engine to return paid links that support Google?s position on net neutrality after the entry of certain key words" ...
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produced by Cox Communications, the third-largest cable TV and broadband communications provider in the nation. It?s a source for views and news on the many issues affecting broadband providers and consumers.

High-speed Internet, cable telephony, HDTV and a whole host of related innovations and issues in the digital space have created intense competition among providers. And, where there?s competition, there?s no doubt info overload for consumers and others trying to make sense of it all. With Digital Straight Talk, we want to make sure those in the industry, consumers and others who care have a clear understanding of our vision, direction and opinion. While we provide a Cox point of view, we also shoot for a balanced discussion that?s light on bull and heavy on substance. We air third-party commentary and even views from those who just might disagree with us.

How admirably old-school. How new media paradigm. How like your father lecturing you with false bonhomie about the evils of marijuana while sipping that highball in his hand. Google's top lobbyist is Andrew McLaughlin of ICANN and the Open Economies Project at the Berkman Center.

Wednesday, June 21

Programmatic Ignorance Enforcer

Among the NYSE Rule Changes leading to full implementation of the Hybrid Market: a new rule, with a pilot program starting today, to insulate the information that flows into proprietary specialist trading from any information the specialist picks up in the course of trading on behalf of clients.
As approved in the Hybrid Market Initiative, the Specialist Algorithm is permitted to send messages to the Display Book via the API to quote or trade on behalf of the specialist?s proprietary interest. The Specialist Algorithm will generate these quoting or trading messages in reaction to specific types of information it will have access to. This information includes specialist dealer position, existing quotes, publicly available information the specialist chooses to supply to the algorithm, incoming orders as they are entering Exchange systems, and information about orders on the Display Book such as limit orders, percentage orders, stop orders, and auction limit and auction market orders. This latter information stream is known as ?state of the book? information. NYSE Rule 104 currently allows specialists to send quoting messages to the Display Book via an external application interface (?API?) in exchange traded funds (?ETFs?) and Trust Issued Receipts. These quoting messages are not based on the system receipt of order or other information. This provision will be superseded by the Rule 104 amendment noted above when Phase II of the Hybrid Market is fully implemented. Prior to full Phase II implementation, the Exchange is commencing a pilot permitting specialists to send algorithmic quoting messages (?s-Quotes?) to the Display Book in all types of securities without the specialists having access to information about incoming orders as they are entering Exchange systems. This pilot will begin on June 21, 2006. The Exchange believes that s-Quoting in this fashion will enable specialists and the Exchange to obtain valuable real time experience with respect to the use of specialist proprietary algorithms.
Okay, white-hat hackers: how are you going to game this?

Antiskeptical Jihad

Crying Foul In Short-Selling Land (Forbes):
An issue once relegated to conspiracy theorists and boiler-room insiders is about to get its 15 minutes in the sun when the Senate Judiciary Committee takes up naked short-selling in a hearing next Wednesday. The hearing, which was postponed a week because of scheduling (and what was said to be overwhelming media interest), will focus on a brewing controversy that has already generated lawsuits against hedge funds, broker firms and research analysts alleging market manipulation in short-selling certain thinly traded stocks."