There’s No 'Fat Finger,' But Gold Manipulation Is Happening: Vince Lanci

When markets quickly move lower or experience a flash crash, the media is quick to point to a ‘fat finger.’ But, to veteran trader Vince Lanci, the problem is rooted in the technology running markets. ‘Manipulation does happen but what’s happening now is not a fat finger; that’s just a good headline,’ he told Kitco News. ‘It’s a combination of algorithm trading, institutional money and stop losses.’ To Lanci, algorithms are the real issue. ‘It’s an algorithm. It’s not bullish or bearish, it’s just looking for the stops,’ he said. ‘The silver and gold markets have the majority of their stops lower, not higher – and that’s why the market goes lower.’ Lanci, who tracks big market moves often as a contributor on Marketslant.com, said this type of price action can happen in any market. ‘I’m going to come down firmly on the side that it is manipulation, it is unethical and it should stop,’ he said. ‘But here’s the problem -- the algorithms are now faster than an exchange’s ability to freshen up where its bids are.’ (show less)

When markets quickly move lower or experience a flash crash, the media is quick to point to a ‘fat finger.’ But, to veteran trader Vince Lanci, the problem is rooted in the technology running markets. ‘Manipulation does happen but what’s happening now is not a fat finger; that’s just a good headline,’ he told Kitco News. ‘It’s a combination of algorithm trading, institutional money and stop losses.’ To Lanci, algorithms are the real issue. ‘It’s an algorithm. It’s ... (read more)

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