In recent weeks we have had numerous conversations with academia, media, mutual fund traders, hedge fund traders, high frequency proponents, as well as other brokerage firms. Sometimes little fights and arguments take away the importance of our biggest points and objections. This is probably true in life in general, incidentally, but for the sake of [...]
http://www.youtube.com/watch?v=_A28Zy9vR_A&eurl=http%3A%2F%2Fwww%2Eyoutube%2Ecom%2Fuser%2FThemisTrading&feature=player_profilepage
Enjoy, and moreover be educated!
Long time industry veterean and former president of NASDAQ, Al Berkeley had some choice comments for the HFTcommunity. Here are some excerpts from an interview that he did with Traders Magazine:
“High-frequency traders are the natural enemy of the individual investor and the large institutional investor. Most market centers are doing things that disadvantage the individual [...]
We have watched in recent weeks increased scrutiny to the highly opaque world of HFT. We are happy to have aided many others in shining a light on these murky waters. We are less than happy, however, to hear our name sullied by some, who have accused us of self promotion. We have a history [...]
The three HFT horsemen are C, BAC and CIT. These three stocks traded 860 million shares today which is 10% of all US Equity volume. Think about that – 3 stocks in a universe of over 5000 U.S. stocks represented 10% of the volume. How could this be? Look at the intraday chart of all [...]
CIT had some awful news out this morning. The stock was halted right after the opening and once reopened it tanked almost 50%. But then a magical thing happened, the stock traded back to $1 from a low of $0.75. What is so magical about $1? Any stock that trades under $1 is not eligible [...]
Its Monday morning and the S&P futures are currently up 5. This morning the “reason” is that CIT cut a deal with its bondholders. Last Monday, a very similar S&P futures gap up in the morning but that was due to Meredith Whitney upgrading Goldman. We always have a very neatly packaged “reason” for why [...]
This is an excellent and insightful piece put together by ZeroHedge:
http://zerohedge.blogspot.com/2009/07/goldmans-4-billion-high-frequency.html
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 [...]
Even simpler…
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 [...]