Where I scoop the NYT...
So, a little while ago I wrote something about high-frequency trading... Now it seems like the NYT caught up with me.
This article is really disturbing. Where does it say that all people have a fundamental right to access the market the same way? That has never been the case! This is why brokers are in business... And the market is always been about asymetrical information - this is why you have winners and losers...
This type of talk makes me forget we are supposed to live in a capitalist country...
...high-frequency specialists clearly have an edge over typical traders, let alone ordinary investors. The Securities and Exchange Commission says it is examining certain aspects of the strategy."This is where all the money is getting made," said William H. Donaldson, former chairman and chief executive of the New York Stock Exchange and today an adviser to a big hedge fund. "If an individual investor doesn't have the means to keep up, they're at a huge disadvantage."
This article is really disturbing. Where does it say that all people have a fundamental right to access the market the same way? That has never been the case! This is why brokers are in business... And the market is always been about asymetrical information - this is why you have winners and losers...
This type of talk makes me forget we are supposed to live in a capitalist country...
posted by e-kvetcher at 9:33 AM
4 Comments:
You might be interested in this article:
http://market-ticker.denninger.net/archives/1259-High-Frequency-Trading-Is-A-Scam.html
Interesting article...
I am confused - first he says that the flash orders strategy is "illegal", then he says "it ought to be illegal".
I don't know what this guy's background is, but if he thinks that this kind of stuff didn't happen before computers, he is either naive or ingenious. Computers just make it more efficient.
>I am confused - first he says that the flash orders strategy is "illegal", then he says "it ought to be illegal".
I think what he means is that front running is illegal. flash orders are not, but he thinks should be. Because the flash orders can be used by large banks to front run.
>but he thinks should be. Because the flash orders can be used by large banks to front run.
I don't know. At least in Chicago, there is a huge number of small firms and medium firms that do low latency trading. I don't think it is the evil "big banks" that are involved in this type of trading. But in general, I think that that world is changing very quickly, with all the ECNs and ATSs and other dark pools...
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