Within ten years, but ill also tell you why it probably wont happen. Real money. This is real money. You are the most important part of the show, so tell me what is on your mind by tweeting or go to facebook. Com. And starting tonight this show is an hour every weeknight, so fix your dvr and text your friends to tell them youll be late for dinner. The battle over high freak went trading is spreading and gaining force. The latest was a lawsuit filed by the city in rhode island. Defendants include the New York Stock Exchange nasdaq, Jpmorgan Chase and banc of america. It claims they provided details of their clients offers to buy or sell stocks to highspeed training firms which then profited at the expense of providence and its investment funds. The suit says the alleged scheme allowed some Market Players to get nonpublic data that gave them an informational advantage. Now, the claims that providence is making will obviously have to be proved, but the suit is just the latest blow against a group of traders who came to dominate the stock market. It now accounts for half of the 7 billion shares of stock traded ever day. Most americans dont understand how it works. You wouldnt be expected to, and thats a problem because the stock market is where so much of your 401k, pension or mutual fund is invested. Everyone from the Justice Department to the fbi, to the securities and Exchange Commission are looking into highspeed trading. They want to know if its creating an unfair advantage for investors who can afford to invest in sophisticated Computer Systems that use complicated formulas for trading. All of this happens in thousands of a second without any human decisions. Now the publics worries have been fanned by the new Michael Lewis book called flash boys, and assertion that the u. S. Stock market is rigged, by the way rigged is also used several times in the lawsuit. They quote, rigged the market and manipulated the market. Again, that is a climb that providence will have to prove. In the meantime its important to say that words like rigged dont describe what is going on in todays stock market. All of this week, were taking a long, hard look at the facts behind High Frequency trading. Each day were going to exam min different aspects, and hear a variety of opinions. Tonight i want to give you a sense of just how much the market has undergone a complete transformation as speed has become the holy grail, and to start our story lets go back to december of last year. Back on december 5th, 2013, something remarkable happened at the closing bell. On that day, a Company Released its Earnings Report milliseconds after 4 00 pm that report fell short of expectations. High Frequency Trading Computers instandingly sold 14,000 shares of the stock at about 121 each, totaling 1. 6 million worth of stock. At 4 00 and not quite one second, the stock closed at 118 a share, losing 3 in less than a second. In that rapid sellout, within the one second, it is estimated that highfrequency traders could have pocketed as much as 28,000. It was a feet only they could have pulled off and its all per fektdly legal. High frequency traders operating near the speed of light have turned what happens own the floor of the new york stock theater. The only opinions in the time frames of less than half a second are these machines. The founder, is a critic of High Frequency trading. It has now grown to hundreds of firms spread across the globe. High frequency trading is so fast its not measured in seconds, its measured in milliseconds. It takes 300 milliseconds, just to blink, 200 milliseconds just to recognize a written word. It takes a high speed trader one single millisecond. So forget about traditional measures. These days if you are not trading at those speeds, you are toast. And High Frequency traders have their own special sauce. That is a complicated formula called a black box algorithm, which can cost anywhere from half a Million Dollars to 10 million each. They scour the market for queues. They digest and react to key words in earnings releases, twitter feeds, and news reports all in the blank of an eye. Often generating profits of just a fraction of a penny per trade. If you have an code that can do that, literally hundreds of thousands and millions of times per day, it prints money. High frequency trading firms some of them have even bragged in the press they have never had a losing day. They set prices for everything that is traded. Orange juice to the price of mortgages, and some people think there is nothing to worry about, like the former chief economist of the securities and Exchange Commission who is now an industry lobbyist. Are the markets broken . I would say absolutely not. I can think back 150 years ago when the telegraph was developed, you had many of the same issues. For mom and pop focusing on the long term, being an investor, ultimately you are okay. But others say High Frequency traders have an unfair advantage. Mark outgoing commissioner of the Futures Trading Commission calls traders who use High Frequency trading programs cheetahs, pun intended. He argues they are running wild in the market. Technology is great. I dont want technology out of markets, but currently there are no rules or regulations, zero. Zipo, nada, on chee das, and im concerned that they may be royaling a market. Regulated fors say High Frequency trading contributed to a flash crash in 2010 where the dow jones fell a shocking 1,000 points in 5 minutes, briefly erasing a trillion dollars in market value only to recover a fie minutes later. On april 23rd, 2013, High Frequency trading algorithms reacted to a hacked Associated Press twitter account which said president obama had been injured in an explosion. It created a flash crash of several millions, that reraises billion dollarses from the s p 500 before it rebounded. The real fear is next time the market wont recover. The complexity of High Frequency trading makes it hard for some of us to understand. By getting in the miding of trades, High Frequency traders are charging the equivalent of a slight tax or toll on every transaction, and that tax is paid by the Institutional Investors who manage your money. Taken individually that toll is very small, but taken together, the critics say the amounts add up to deaths by a thousand cuts. You wont believe the amount of money that High Frequency traders are spending just to times. And that could be hundreds of millions of dollars. Tomorrow night on flash trading, im talking about lasers, fiber optics, even a transatlantic air bridge in its neverending quest for speed, well see why wall street has been willing to pay a lot to make a lot. A tiny tech start up giant, ill tell you what is at stake in this david versus goliath battle that could change how americans watch tv forever. Plus the fate of the xl pipeline could come down to a nebras nebraska prairie. And later ill help you what the debate that divides america, unites the critics, a reason to watch Al Jazeera America the standout Television Event borderland, is gritty honesty. A lot of people dont have a clue what goes on down here, the only way to find out, is to see it yourselves. Taking viewers beyond the debate. Dont miss Al Jazeera Americas critically acclaimed series borderland on Al Jazeera America also available on demand well its official. Xfinity watchathon week was the biggest week in television history. But just when you thought it was over. What now . With xfinity on demand you can always watch the latest episodes of tvs hottest shows. Good news. Like hannibal. Chicago fire. And bates motel. The day after they air. Xfinity on demand. All the latest episodes. All included with your service. Its like hifiving your eyeballs. Xfinity. The future of awesome. The death toll could be much higher than anyone known. Posing as a buyer. People ready then. Mr. President who should answer for those people the future of television could lie with a Crafty Little tech startup that has found a way to beam broadcast tv live to your computer without buying an expensive cable package. It is called aereo, and is ruffling a lot of have feathers with the big tv companies. They are doing everything they can to stop the Little Company that has hundreds of thousands of subscribers. It has been taken all the way to the Supreme Court. Before we get into the implications of what this could mean, Patricia Sabga shows us what it really is. Its broadcast tvs worth nightmare. Aereo. Its a subscription service, that basically leases out a hightech version of the rabbit ears that used to sit on top of your television. Only they are teeny tiny. The size of a dime. Antenna for subscribers are housed in an antenna farm that captures broadcast networks, stores them in in a cloud, and delivers them live to your computer, tablet or smartphone. There is a problem, the major broadcasters are not happy that aereo, has basically provided a way for viewers to bypass buying their continent a traditional cable package. They say what aereo is doing amounts to left the. Ranking tv signals and repackaging them for profit without lawfully acquiring the content. But aereos ceo told katie couric that they have nothing done wrong. The idea that someone is using an antenna is stealing a signal, just flies in the face of traditional definition. If someone has come out with a smarter antenna, and you dont like that that evolution is happening, well, im sorry about that, and thats just the nature industry. Patricia sabga, al jazeera. Arrow says broadcast television makes 90 of its profits from his advertisers. But on tuesday comes the big test, a showdown at the Supreme Court. If aereo loses it could put them out of business for good. The ceo says he is confident the broadcasters will win, and if they dont win, he says the networks are form their own version of an aereo. Joining me now is mamiram good freed. So as a consumer it seems like aereo is a good thing . It seems like it. The fees that the Cable Companies have to pay the broadcasters just to carry their signal are one of the top causes of is price inflation, and that trickles down to you as a consumer. The only time they are free is when you are getting those little rabbit ears out and try to catch the signal. Who television . There are the chord cutter, the people who dont want to pay for cable, but want a good signal. So you could aware you, plus netflix, plus hulu , that basically gives me all of the content i would want. A big discount. Exactly. Exactly. So what is the implication . First of all i havent seen a lot of handicapping on which way this goes with the Supreme Court . Its really hard to tell. There are some people who say the broadcasters are going to win because there is so much at stake for them, they are going to defend it as fiercely as possible, and going up against a pretty small startup but a pretty small startup that is funded by some fairly wealthy people. Exactly. What is at stake here is billions of dollars in revenue that broadcasters get right now. And if aereo wins those revenues may go away. So if i think back, though, hulu was also a reaction to the fact that people were putting stuff on youtube. The threat that if the broadcast networks dont win this one, they can develop Something Like this, is that true . I dont see why it wouldnt be true. I think what is less true is what you have heard from other broadcast executives who have said were just going to duck behind the cable wall and stop being free to air broadcasters. That i dont think is going to happen, because one of the things you get much higher ratings because everybody can get you for free. Where is the Justice Department on this . Well, i dont know exactly. And i think that will come out maybe a little bit in the testimonies tomorrow. Thats something to look for. But i dont even think well be able to come away with tomorrows hearing with a clear idea of who is winning. I dont think well know until the Supreme Court makes a decision this summer. Now in the end. The move towards chord cutters is growing. Bottom line is we meet them all the time. I dont know if you have a lot of friends who buy these 150 cable packages. They are out there. How do these Companies Deal with the fact that more and more people are going that way. If its not aereo, people will keep inventing ways to buy around cable packages. Right now that is a relatively small number of people. So they are really investing in the concept of tv everywhere. Which is if im a cable subscriber, i can sign in and watch all of these channels villa ipad or my desktop compute or other means as long as im a subscriber. So well offer you more of the connectivity that you might want chord. Is that the thing the chord cutters want . I think they just dont want to pay the money. So thats one of the Big Questions is how long does that take to that to be eaten away at, and how long does it take to make it cheaper for consumers, to get in and do what they want to do. Thank you for being with us. Always a pleasure. Likewise. If you stream movies and shows on netflix, the company dropped a little news that will definitely effect you. Plus the gas and oil boom has america on the path to Energy Independence, but we probably wont get there. Ill tell you why. Keep it right here. On Al Jazeera America when science intersects with hope. Im hoping to give someone a prosthetic arm for under 1000 inovation finds oppurtunity a large earthquake would be an inconvenience rather than a disaster. And hardware meets humanity this is some of the best driving ive ever done eventhough i cant see. Techknow our experts take you beyond the lab were here in the vortex. And explore the Technology Changing our world. Only on Al Jazeera America start with one issue education. Gun control. The gap between rich and poor. Job creation. Climate change. Tax policy. The economy. Iran. Healthcare. Ad guests on all sides of the debate. This is a right we should all have. Its just the way it is. Theres something seriously wrong. Theres been acrimony. The conservative ideal. Its an urgent need. And a host willing to ask the tough questions how do you explain it to yourself . And youll get. The inside story ray suarez hosts inside story weekdays at 5 eastern only on Al Jazeera America now if you like your netflix plan you are keep it, but for new customers, prices are going higher. They will raise prices by 1 or 2 for new customers within the next few months. They havent changed pricing plans in the United States since 1997 when it tried to introduce two separate plans. That didnt go over very well. Netflix executives are emphas e emphasizing the growth in content as well as original programming. This news came after the Company Reported very strong profit and subscriber growth for the first three months of year. Jake ward is outside netflix head quarterers in california, jake, i have to tell you, i was one of those people i left netflix in 2011, when they did that thing. Because i liked getting the dvdzs and they didnt have as much to offer in streaming as the dvds. But in the end they understand the difference. Now before i ask you to comment on it. If you bought netflix stock five years ago, you are up 650 right now. Talk to me about this. Thats really the amazing thing about this. Its a very happy day here, because its showing that the gamble has paid off, because they have lost a handful of relationships with other content partners, their catalog shrunk a bit for the internetonly viewers, and investing in other original series, it turns out they made their money back plus some. And it turns out that putting 100 million into paying kevin spacey to create new content pays back handsomely. But the reason they have be to brutal about adding a 1 or 2 is because they dont have any other source of revenue. Thats interesting, but i guess that subscription revenue is a good thing. Back in the old days when it was a onetrick pony, i thought if all you have to do is ship out dvds how come jake and i cant get into this interest. And it gives you to causes you to join netflix. Absolutely. They have created an addictive quality. And they have combined their incredible analytics that go from be ing a provider and combine that with being a creator. They knew from all of their User Behavior analysis that kevin spacey was going to do well. They new a dark femalelead comedy was going to do well. Right, and i thought that matrix was just so they could tell me, hey if you like this movie, youll like this one. Listen, next week you are going to at a Facebook Developers conference, and one of the things that people are talking about with facebook is the idea that they might develop a payment system, you can pay people using a facebook account. What do you know about this . Well, this is obviously a have been big deal if it does happen. And the rumor is they are weeks away from creating a payment system. It makes logical sense in terms of the social behaviors we have come