I know, I know… it is not November. And to be honest I never liked turkey, especially with all the stuffing. The Wall Street Journal reports that the SEC is in fact looking into the role quote stuffing played in the Flash Crash of May 6th: SEC Probes Canceled Trades (ht ZH). The article highlights [...]
This morning we awaken to find the Bachus/Hensarling August 24th 2010 letter to Mary Schapiro in our inbox, which we include as an attachment for you to read. Ever since the HFT industry formed their own lobbying group in Washington DC a few months back, we have expected a letter like this to surface. We [...]
David Weild knows a little something about our capital markets. He was previously Vice Chairman of Nasdaq and now runs his own firm, Capital Markets Advisory. He is also a senior advisor To Grant Thornton. David and his partner, Ed Kim, have written extensively about how there has been an IPO crisis going on in [...]
We have recently pointed out that many more voices have been weighing in on our fragmented equity market structure. Firms like Southeastern, Invesco, Principal, Iridian and Baron Asset are all well respected, established institutional players that have joined the chorus of voices and are starting to demand action from our regulators. The chorus got even [...]
http://www.ft.com/cms/s/0/835ba5ae-b05e-11df-8c04-00144feabdc0.html
Yesterday, Larry Tabb of Tabb Group penned an editorial in the online edition of the FT. I linked to it above, and pasted it for you below, but don’t bother even reading it (ok, you can if you want); I will recap it for you right here:
“Y’all are all bummed out because the economy stinks, [...]
Major Money Managers Representing Retail Investors Speaking Out Against HFT
As we had anticipated, leading institutional investors of primarily retail money are beginning to speak out against the market structure that has helped foster HFT. Here are three major examples:
Kevin Cronin, Director of Global Equity Trading at Invesco
Invesco (NYSE: IVZ) is [...]
Ok, who woke up the media and told them about what has been going on in the stock market over the past two years? After being one of the few critical voices trying to be heard over a chorus of HFT cheerleaders, we at Themis Trading have been pleasantly surprised with all the critical attention [...]
http://www.cnbc.com/id/15840232?video=1572716553&play=1
Listen 06:30 on!
The tide is turning folks. Kudos Mister McCaughan. He nails HFT and more importantly our market stucture for what it is, and explains the link to investor confidence, with eloquence and quiet logic and confidence.
Freaky Patterns
We are all told that it is a square; maybe it is. But we just feel the insides of it need studying. By the way the above is a drawing by the mathematician, Escher, and it is called the Escher grid. You all remember Escher from high school and college? [...]
Some of you may recall a white paper that we wrote a few months back titled “Latency Arbitrage” :
http://www.themistrading.com/article_files/0000/0519/THEMIS_TRADING_White_Paper_–_Latency_Arbitrage_–_December_4__2009.pdf
In this paper, we detailed the effects of having two separate quotation systems. The fast system which the HFT’s use is constructed with high speed, co-located computers that have direct access to data feeds supplied by the exchanges. [...]
We can’t help it. We are competitive, and we don’t like to lose! You see that’s what being from New Jersey means.
Take for example, when we heard that Tennessee was voted the most corrupt state in May 2010, outdoing even Rod Blagojevich’s Illinois, we knew that we could top that. And [...]