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.  government owned, AIG.  AIG recently underwent a 1 for 20 reverse split since the “issuer” wanted to make their stock look more attractive to institutional clients.  You would have expected volume in this stock to be reduced by 20x.  Instead, volume has remained at a (more…)

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.  You would think that I should get at least 500 shares executed (100 at $11.16 and 400 at $11.17). Sigh. I get none. As soon as I hit enter, those offers vanish. No trades on tape even. The HFT players offering the stock have (more…)

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