This is the most comprehensive article wriiten yet that we have seen on the topic of high frequency trading and the potential negative consequences. We applaud Jacqueline Doherty of Barrons for writing such a well researched, educational piece.
Barron’s
A Fairer Stock Market For All
By Jacqueline Doherty
In the past 10 years, technological innovation has radically transformed how [...]
I like examples.
My client routed her small stray sell order (about 5,000 shares) to a well-known electronic brokerage firm’s stealthy algorithm, which utilizes dark pool aggregation, and has a very cool macho helicopter-military-like name. These are the facts.
The stock: small cap OTC restaurant stock, ticker left out of the discussion. Average daily volume = 62,000 [...]
So cool. When a co-located high frequency trading firm sees your order coming, and picks you off, the industry actually has a term for it! Latency Arbitrage!
I am going to go downtown Chatham, find one of our financial-firm unemployment casualties walking to Dunkin Donuts (next door to me) for coffee and wifi, whack him over [...]
i had listened to some very smart people yesterday break down the sec proposed regulations of dark pools. to recap, the sec wants to change the threshold (the % market share that a dark pool would have to start sending their orders to the quote) from 5% down to .25%. the sec also says there [...]
We believe the SEC is striking an appropriate balance by shining a light on so much of the murky and small-execution size dark pools, and forcing their flow to the public quote, while still acknowledging the role of block trading and innovation for the institutional and retail community alike. We also appreciate the SEC looking broadly [...]
Many of my industry friends know that my youngest daughter, Mary Alice, has Neurofibromatosis Type I. She was diagnosed as a toddler, and I remember the angst and helplessness we felt upon learning of her diagnosis. Well, my wife and I do some fundraising for Children’s Tumor Foundation (CTF) so that we can do our [...]
We are working a buy order for a customer of ours (it is not in the large cap top 100 names where HFT blesses us with their liquidity), and trying to float our bid in as the market is heavy.
Essentially, we are bobbing and weaving, changing our trading venues, and pegging at times off the [...]
Please see the Wall Street Journal Online Edition:
http://online.wsj.com/article/BT-CO-20091018-703738.html
Mobius Rounds On High-Frequency Traders – Financial News
By William Hutchings
Of FINANCIAL NEWS
Veteran fund manager Mark Mobius has hit out at high-frequency traders, a growing force in global equity markets, who use software to spot patterns and profit from tiny price [...]
I just watched Mr. Myron Scholes being interviewed by Becky Quick on CNBC.
First off I would like to congratulate Becky Quick for conducting such an informative, non-sensational, and insightful interview. Keep up the good work; we need more of this from the media.
Secondly, Mr. Scholes finished his interview with an analogy. The analogy is true [...]
Joe Saluzzi on Bloomberg 10/14
http://www.youtube.com/themistrading#p/u/0/VAZy6ucbGdA