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Monthly Archives: February 2010
24 Feb, 2010
Make-or-take pricing has significantly distorted trading
“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 [...]
23 Feb, 2010
SEC May Allow Subpenny Pricing
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 [...]
23 Feb, 2010
The Fault Lies In Our Market Structure, Not Ourselves…
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 [...]
22 Feb, 2010
More on an Order Cancellation Tax
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 [...]
19 Feb, 2010
Order-Cancellation Tax
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 [...]
12 Feb, 2010
NYSE CEO comments on US market structure
There were some very interesting comments from Duncan Niederauer, NYSE CEO, in their Q4 earning call. From the transcript, http://seekingalpha.com/article/187599-nyse-euronext-q4-2009-earnings-call-transcript?page=2:
“The SEC is currently engaged in a market structure review and we are hopeful that any changes they enact will help even out the playing field and raise the regulatory bar for less regulated trading venues [...]
12 Feb, 2010
Exchanges court Chinese IPO’s at the expense of US market structure
It seems like the growth area for US stock exchanges when it comes to IPO’s will not be from American companies but from Chinese companies. According to a NY Times article, http://www.nytimes.com/2010/02/12/business/global/12ipo.html?ref=business :
The New York Stock Exchange and the Nasdaq, where the number of I.P.O.’s withered last year from hundreds a decade ago, also are stepping [...]
12 Feb, 2010
Sigh… High Frequency Voting…
I don’t even know what to say. On the bright side it means we soon should have High Frequency Dating…
Goldman Sachs faces ‘Robin Hood tax’ vote-rigging claims
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7217200/Goldman-Sachs-faces-Robin-Hood-tax-vote-rigging-claims.html
11 Feb, 2010
NYSE adds Getco LLC as a Designated Market Maker…hmmm.
Remember Getco? The High Frequency Trading Kings? (see here: http://online.wsj.com/article/SB125133123046162191.html and here: http://blog.themistrading.com/?p=283)
Well, recently Labranche sold their specialist operation to Barclays, who just sold 350 “DMM assignments” to Getco LLC. See this article:
http://www.securitiesindustry.com/news/-24670-1.html
NYSE Euronext and GETCO LLC, a global electronic trading and technology firm, today announced that GETCO is expected to become a New York [...]