Goldman's black box trading source code is out

A Russian programmer named Sergey Aleynikov was picked up this past Friday by the FBI for allegedly stealing and passing along code that, if circulating out in the wild, could expose US markets to manipulation and cost Aleynikov's former employer, Goldman Sachs, millions.

If you have your hands on the code that runs on Goldman's trading platform—again, one of the largest in the world—then you know with 100 percent accuracy which trades Goldman's computers are going to make in response to a given set of inputs. All you need then is even faster hardware so that you can get to those trades just a few milliseconds before Goldman, and you'll always beat the bank and therefore be able to sell to Goldman at a slight premium. Goldman will therefore make less on every trade, since you'll essentially be usurping their place in the pecking order.

The NYSE puts out a weekly list of the top program traders by volume, and Goldman typically tops this list by a country mile. Then last week's list came out, and Goldman's name was shockingly absent. And today, now that the code theft story is out, the NYSE has put out a statement claiming that Goldman's absence on the list was the result of a "system error;" it has also released a revised list showing Goldman once again dominating program trading activity.

Source: Ars Technica

CompuServe Classic shut down

Another chapter in internet history closed on 30 June, 2009.

Online shopping? Stock quotes? Worldwide weather forecasts? CompuServe was providing all of that in the 1980s. Who needs color graphics, music and streaming videos? CompuServe could provide users with what they needed with plain text on a slow dial-up connection.

Source: Paper PC

Australian gamer blackballed over virtual world 'fraud'

Facing real world debts, a trusted figure in a popular online game stole money from the virtual bank he ran and exchanged it for cash through the black market.

It happened in EVE Online, where more than 300,000 subscribers pay $US15 a month to play. They gain wealth through hard work, manipulating the market, or killing rivals in a distant future where humans have colonised the stars in an online game similar to World of Warcraft and Second Life.

"I'm not proud of it at all, that's why I didn't brag about it. But you know, if I had to do it again, I probably would've chosen the same path based on the same situation," he said. EBank survived the crisis. But Richard will not be returning to EVE anytime soon.

Source: The Age

Just goes to show human nature reflects similarly in the virtual world (EVE) as it does in the real (Wall St). Perhaps the problem is not just people but also the governing systems, the "game rules", which create unbalanced power and incentives which does not deter its abuse. Trust cannot exist in a monetary society therefore we need another solution - any comments?

Palm Pre Spoofs iPhone

The new Palm Pre cellphone has a “media sync” feature which lets the device sync with iTunes in a fashion identical to an iPod. The Palm Pre reports its Product ID as iPod and Vendor ID as Apple with a few other changes. With Palm already pulling tricks like this presumably through software we wonder if this will become a full-on arms race.


Source: Hack a Day

Update: Chinese security software now optional

China's latest attempt at mass censorship has taken another turn. Reports that the "Green Dam" software can allow hackers to easily control the host PC, as well as accusations from US-based security company (Solid Oak) that Green Dam software stole their IP. Chinese government announced on 16 June 2009 that Green Dam will now be optional.

Source: Toms Guide

Update: Chinese security software full of security bugs

Every PC in China could be at risk of being taken over by malicious hackers because of flaws in compulsory government software. The potential faults were brought to light by Chinese computer experts who said the flaw could lead to a “large-scale disaster”.

Source: ZitZot

Chinese government requires all new PCs to include censorship software

China’s Ministry of Industry and Information Technology has ordered that all personal computers, whether made in China or imported from abroad, must include specific software to filter inappropriate information. Rebecca MacKinnon, assistant professor at the Journalism & Media Studies Center at the University of Hong Kong, has posted a copy of the Chinese government order on her Web site.

According to her translation, Web filtering software called Green Dam Youth Escort must be installed on all PCs sold in China as of July 1. The software also must be included on a hard-drive partition or on a CD included with the computer to allow for reinstallation.

Source: ZitZot