Computer Pgm To Manipulate Markets Stolen!

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

PROCEEDINGS BEFORE MAGISTRATE JUDGE KEVIN N. FOX,
UNITED STATES DISTRICT COURT


What follows is an excerpt from page 8...lines 3 through 7...

3 activity. In addition, because of the way this software
4 interfaces with the various markets and exchanges, the bank
5 has raised a possibility that there is a danger that
6 somebody who knew how to use this program could use it to
7 manipulate markets in unfair ways.


I am not a lawyer but I play one in the blogosphere. So let me interpret this testimony and then ask some hypothetical questions (which have nothing to do with the case).

FACT: Plaintiff has stated, as a fact, that the program can be used to manipulate the market in unfair ways.


QUESTIONS:

1. How would you define manipulate?
2. Does Goldman Sachs' use of the program constitute manipulation?
3. Would not such manipulation affect the market both during and after the fact of the program's use in both direct and indirect ways?
4. How would you define fair?
5. Does Goldman Sachs' use the program to manipulate the markets unfairly? (this is like asking have you stopped beating your spouse)
6. Is there a qualified, independent body that examines Goldman's use of the program to ensure compliance and absence of malfeasance?

Full text of testimony is posted on SCRIBD here is a convenient link: http://zerohedge.blogspot.com/2009/07/aleynikov-transcript.html