Sounds like the title for a bad B-movie. Once again, the wards of the state have woken up. Currently, combined volume for 4 stocks (C, AIG, FNM and FRE) is running at 15% of total consolidated volume today. So, all of you who are complaining about the lack of volume, you must be watching the [...]
Barrons ran a piece (http://online.barrons.com/article/SB126783128753256821.html) on the dangers of high frequency trading. Here are some excerpts:
“HFT takes advantage of stock-price movements for short-term gain for one set of investment banks’ clients, while other clients are investing for the long term. These misaligned interests add to concerns about trust and integrity on Wall Street.”
“HFT players are [...]
We were mentioned in his commentary, and we are honored to have been so.
http://www.huffingtonpost.com/sen-ted-kaufman/concerned-about-stock-mar_b_484230.html
March 3, 2010
Sen. Ted Kaufman
Concerned about Stock Market Abuses? Join the Club
I have spoken on the Senate floor many times about the importance of transparency in our markets. Without transparency, there is little hope for effective regulation. And without effective regulation, the [...]
Enjoy!
Sidney Crosbey with Shaun Majumder
“In essence, the company was able to cut in front of thousands of fans and buy the best seats in the house, authorities said. Wiseguys allegedly sold the tickets at a steep mark-up to brokers, who in turn sold them at an even steeper price to fans, according to the 60-page indictment.” http://www.nj.com/news/index.ssf/2010/03/feds_say_wiseguy_ticket_illega.html
Does this sound [...]
OPEN
NASDAQ
Opening Cross takes place at 9:30am
Market On Open (MOO) and Limit On Open (LOO) Orders:
- must be received by 9:28am
- After 9:28, LOO orders are accepted but changed to Imbalance Only (IO) orders for the opening NASDAQ cross, and then kicked back. They will not sit on the book after the Opening Cross has [...]
“Make-or-take pricing has significantly distorted trading,” wrote James Angel of Georgetown University in Washington, Lawrence Harris of the University of Southern California in Los Angeles and Chester Spatt of Carnegie Mellon University in Pittsburgh. “Brokers make most order-routing decisions based on the quoted prices that their clients will receive, and not the true net prices [...]
A recent Businees Week article by Nina Mehta states that the SEC will probably consider allowing more stocks to trade in price increments of less than 1 cent. http://www.businessweek.com/news/2010-02-23/sec-may-allow-subpenny-pricing-for-more-stocks-shillman-says.html
Question: Why does a long term investor need sub penny quotes?
Answer: They don’t.
The only market participants seeking sub penny quotes are the high frequency trading firms and [...]
Every now and then this bares repeating. We at Themis are not anti-HFT. We are just plain and simple allies of long term investors. We are allies of owners of stocks rather than renters (PS owner in our book is not a very strict definition SMILEY FACE).
HFT practitioners, even the predatory ones, are just doing [...]
Last week, we posted a suggestion from T3Live about instituting an order cancellation tax. We think this is an interesting suggestion. But to really understand why there are so many cancellations during the day , you have to dive into our current equity market structure. Ask yourself: Why would the exchanges allow such behavior to go [...]
Hmmmm…. I like. From Brandon Rowley’s site (T3Live.com) with permission: http://blog.t3live.com/2010/02/proposal-for-order-cancellation-tax.html
Friday, February 19, 2010
A Proposal for an Order Cancellation Tax
By: Sean Hendelman and Brandon Rowley
The mechanics of the equity markets are under constant evolution with the consistent goals over time of increasing speed of execution and advancing price discovery. Participants in the stock market have [...]