 |
 |
|
|
“A key message: despite commonly held negative perceptions, the available evidence indicates that high frequency trading (HFT) and algorithmic trading (AT) may have several beneficial effects on markets. However, HFT/AT may cause instabilities in financial markets in specific circumstances”…UK Foresight Report 10/23/12
The above quote is from the final report of the UK Foresight project known as “The Future of Computer Trading in Financial Markets” which was released today. We think the Foresight Report missed the major issues regarding market structure. The fragmented market structure and conflicted interests of the
This content is restricted to site members. If you are an existing user, please login. New users may register below.
You must be logged in to post a comment.
Themis Trading is an independent, no-conflict, institutional agency brokerage firm specializing in equities. The purpose of our blog is for a discussion of market structure issues as well as general market commentary.
You are not currently logged in.
LOL..we got another 14% increase this year RT @whitehouse: Premiums are falling: at.wh.gov/ldBVl #ObamaCareInThreeWords 8 hours ago1,666 9 hours ago
I remember when the tumbler was what we used to make the martini. 11 hours agoWhoa... Why did the market just crash...errr ... I mean fall 2 S&P points? 12 hours ago| Home | Who We Are | The Themis Approach | Market Structure Analysis | Newsroom | Blog | Contact |
| Copyrights ® 2012 All Rights Reserved By Themis Trading LLC |
November 16th, 2012 at 1:15 pm
The study the Foresight report references as “showing no evidence for HFT causing market abuse”, from CMCRC, is arguably fundamentally flawed by the measure it took as a “proxy”. They used end-of-day price dislocation alerts”. Why is that an adequate proxy for possible HFT market manipulation when at end of day many HFTers are trying to close out their positions, not manipulate? Unsurprisingly they found a negative correlation between HFT activity and this end-of-day abuse. Better to look, for instance, intraday for signs of rapid order activity distorting orderbooks, eg the point volatility of best bid or ask. There’s plenty of evidence of that!
November 20th, 2012 at 12:45 pm
Thanks for this comment.