What is wrong with the “for-profit” exchange model? After all it allows for more innovation. Like the circular maker/taker pricing models in which each exchange competes with each other to “attract orders” by offering rebates of various magnitude (payment for order flow), and charging slightly higher fees usually to “remove an order”. Usually. Sometimes the [...]
We have made the argument in the past that our “evolved” market structure, with for-profit exchanges making their money on co-location and tape revenue, and not listings, is not conducive to public capital formation, specifically in the small cap arena. There are just no economics to support the IPO’s in the aftermarket. David Weild, former [...]
As the US equity market continues its run higher disregarding all major potential disasters, the rumor mill has heated up. Rumors are nothing new on Wall Street. In recent weeks, we have heard takeover rumors on GME, PTV, HOG and a host of others. All of these rumors had one thing in common: they turned [...]
Cameron Smith wrote in Traders Magazine Online, today, a defense of HFT. He used an analogy that HFT blesses the market with its liquidity, and now people have the nerve to question it: the analogy is of a sailor saving a drowning boy, only to have the boy’s mother ask him where is [...]
Yesterday, the president of the 3rd largest exchange in the United States wrote a letter to the trading community urging participants to draft a comment letter to the SEC’s Concept release http://batstrading.com/resources/newsletters/2010-03-Commentary.pdf . We agree. Everybody should make their opinions heard on the current state of the equity market.
After reading the BATS letter, it is clear which [...]
Joe’s excerpts:
“This market is built on lies and rumours…”
“This is now “the Jason Bourne market, because when he goes into a room, the first thing he checks for is where the three exits are. How do I get out. That’s what investors are doing.”
Full footage is here:
Joe Saluzzi on Bloomberg\’s Closing Bell with Carol Massar [...]
We have voiced our thoughts on latency arbitrage in our white papers, as well as prior blog posts here.
Today we read this in the WSJ:
http://online.wsj.com/article/BT-CO-20100310-711575.html
Some excerpts:
“Wall Street’s fastest traders have their eyes set on the newest speed–the picosecond, or one trillionth of a second. But even as trading reaches its fastest levels yet, companies with [...]
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 [...]
Captain Fantastic and the Dirt Cowboy
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 [...]