This is a question for those that know more than I do about how the market actually functions. I AM NOT saying that I believe this IS happening, but I realize my faith in the system is not based in actually understanding how robust it is, but rather just faith. So...
Hypothetically, if the SEC or FINRA were compromised and stopped looking for market manipulation, and if at the same time the SIP (Securities Information Processor) was hacked, wouldn't it be possible to control the markets artificially? Everyone places their buy/sell based on the current reported prices. If the system that calculated those prices based on trades altered the outcome (and the regulatory body that audits it turned a blind eye), could the market actually be "hacked"? My guess is that this couldn't go on very long before it would be discovered, but could it go undetected for weeks or months? Or is there independent and public information that would be impossible to compromise?
Again, I'm not saying that I believe this is happening, or that I even have a clue if this could be done, but that's why I'm asking the question. On last note, this doesn't have to get political, this is just a question about the systems and their security.