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What are you talking about? Winston tries to insert some realism and actual professional expertise into your shit throwing tantrums. He isn't a shill. He has flat out listed many of the actual problems that need to be fixed, while also differentiating between the issues that are simple...

Is this a velocity of money argument? On one level that is true, but... Any economic activity will employ people and result in taxes. That doesn't mean that all economic activity produces wealth for society. Think about it like this, if I pay someone to dig a hole and then fill it back up...

Agreed completely. The best place for all that wealth is as capital in a productive, efficient company that creates jobs and societal wealth. The details of who actually owns the capital doesn't really matter as long as it is used efficiently. With rich people, the waste comes in when they...

It does sound like these guys were most likely manipulating markets, but layering can be perfectly legal, depending on the intent. For instance it is not uncommon for a trading firm to better a BBO market on an illiquid exchange. The BBO order is still significantly off the NBBO price so as to...

Ok, I'm interested. What is the name of your service?

I think the SEC is going after the wrong people, and the wrong things. Market manipulation should be defined better, and regulated with an iron fist. Quote stuffing should be defined and outlawed as well. The SEC and FINRA regulators are typically half-wits who are looking to make examples of...

This is very interesting. The problem though, is that the market manipulation rules are unclear. Nowhere in the SEC or FINRA documentation can anyone find a definition of market manipulation. It is natural for a market to back off from a large resting order. Other's will "lean" on this order...

ITM money options rarely trade. Look at the daily volume. You will simply not get a fill on these options. Also, there is pretty much zero chance that you can get filled on the box all at once, either through working a complex order, or through working single legs. Therefore, you would have no...

DV01 doesn't make any sense in reference to equity, index, or volatility derivatives. I suppose that is the inside joke that atticus and SIV66 are trying to push on the ET crowd though.

Trading VIX futures spreads is similar to trading SPX calendar spreads, only without the gamma and theta risks. The biggest problem with VIX futures is the lack of liquidity combined with the monthly manipulation of the expiration prices by Goldman. VIX futures will often not correlate to...

Oh...goodie! The whole let's-guess-how-a-guy-makes-money game. Here's my 2 cents... SIV66 has admitted that he uses flys, ratio spreads, and other contained risk long theta strategies. Also, his p/ls clearly showed each large winner coupled with a large losing side, meaning he doesn't take...

falcon, You should try to take some tips from atticus. He collects decay, but does so in a way that his losses are limited, AND he sets himself up to win if the black swan event happens. You do seem to be very aware and scientific about your process, so please don't let me stand in the way...

Via internalization, market fragmentation, and information asymmetries there are ways for a few very large companies to effectively, though legally, front run order flow. These are market structure and regulatory problems that should, but unfortunately probably won't, be fixed. How exactly is...

Why does this feel like I'm talking to a child? Sigh. No. There's tons of manipulation in the marketplace. IF we define HFT as any computerized trading, then most of that manipulatin is done by HFT companies. However, IF we define HFT as any computerized trading, then every shred of...

I caught that as well. This is an atrocious oversite for a HFT article. These guys don't even grasp the basics. Did you also notice that the authors listed the CME as a stock exchange? I think they meant to list the Chicago Stock Exchange, but instead wrote the Chicago Mercantile Exchange...

We get it. You are angry...but about what, exactly? Did you read the article you linked? There wasn't a single shred of evidence that Infinium is guilty of anything except fool-hardy automated trading. You are all over the place, throwing shit everywhere you look. Please explain exactly...

I agree with tradingscrub. Sub-pennying should be gone, and quote stuffing should be discouraged. Co-location should be more transparent However, internalization is by far the biggest problem. I was at a HFT seminar about 6 months ago. To paraphrase an exec from a large brokerage...

The problem, 777, is that you don't have a thesis to focus your emotions. You are angry, and justifiably so, but you aren't directing your emphatic posts towards anything tangible. You are causing a ruckus, and throwing your pooh at anyone who tries to help you direct your anger. The...

Read what rew wrote again.

I am assuming you are talking about DEEP ITM (100 delta) options? The reason is the carry rate on the option's premium results in a price less than parity, since a European option can't be exercised into an underlying position. Whereas a deep itm American option won't trade for less than parity...