“Should We Buy the Fully Submersible Computer?” and Other HFT Questions – Andy Shmoony, 60 Microseconds.
I hate HFT. I mean what does it all mean? What’s this Flash Crash stuff anyway? And circuit breakers… what’s the deal with that? No one really wants to see the nitty gritty of how this market stuff works anyway. [...]
Captain Fantastic was Elton John’s 9th album released in 1975. Many consider it to be his best. If you like Elton John, you know that 98% of his songs are collaborations between him and Bernie Taupin. This album is a theme album that tells about their uphill battle to make it [...]
Ari J. Officer, a contributor to Time Magazine, pens this piece in Time Magazine this week entitled The Truth About High Frequency Trading: http://www.time.com/time/business/article/0,8599,1925661,00.html
The summary: HFT is advanced market making. It makes it cheaper to trade for ordinary investors as it tightens spreads and adds liquidity. High Frequency Trading needs more competition, as the largest [...]
My partners frequently poke fun at me (ok there is a long line of folks doing this…), specifically for thinking too deeply about a topic, and expressing an idea with too much detail.
I would like to get real simple here. High Frequency Trading is proprietary computer trading with the goal of collecting rebates, and/or detecting [...]
Citigroup looks like a prime candidate for HFT today. Cheap stock price, high volume, early morning ramp then probable flatline around $3.15. BTW, the HFT’s pay less SEC section 31 fees (which are based on market value of the transaction) when they traffic in cheap stocks which is why they tend to trade stocks under [...]
There has been alot of talk over the past few weeks about HFT. We have argued that the volume these HF traders are creating is not beneficial to the market. Lets take a closer look at what a high frequency favorite stock looks like. The poster boy for HFT this week is none other than 80% U.S. [...]
I am trading a small cap stock for a customer today (I leave out the ticker for anonymity purposes). It has traded 4,300 shares so far today. I have 75,000 shares to buy.
The scenario: 100 shares offered at $11.16, and 400 shares offered at $11.17. I place an order to buy 1,000 shares at 11.17. [...]
Why Institutional Investors Should Be Concerned About HFT
By Sal L. Arnuk and Joseph Saluzzi
A Themis Trading LLC Mini White Paper
It is now generally understood that high frequency traders (HFTs) are dominating the equity market, generating as much as 70% of the volume.
HFTs are computerized trading programs that make money two ways, in general. They offer [...]
More Stuffing?
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 [...]