A number of High Frequeny Firms Stopped Trading...

why should market makers put a bid on short sellers or naked short sellers and from traders. they have uptick rule for a reason,,the market illiquid and anyone cashing out takes liquidity out of the market. with no uptick bid rule...all the bids are easily taken out leaving no bid.

there is such thing as no bid and no ask..that is afterhours. and no volume

these HF are just computerized daytraders. they offer no value to the market. and are responsbile for like 70% of intra-daily volume.

of course these firms can cause whiplash trading like today.


Quote from TraDaToR:

Indeed...

"No bid" days are nothing new. HFT and electronic trading weren't there in 87.

In fact, electronic trading has reduced and certainly prevented real crashes in the last 15 years given the historic level of volatility during this period. IMO we would have had a bigger number of no bid days in a pit -like environment.
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Quote from Angrycat:

I would be shocked if this were "engineered by Wall Street". Wall Street is a big place with A LOT of firms. The problem with collusion is that it never works because the interests are too divergent and the temptation to cheat too great.

This is simply the consequence of the SEC killing off market makers by many different methods - increasing ever more onerous compliance costs chief among them. When you systematically kill off market making firms, you're left with a handful of black boxes. If one of them is turned off....well....say good-bye to the bids.

The problem with the market is NO LIQUIDITY. That's a function of over-regulation. But, don't worry. This will be used as a pretext for more regulation and will lead to a more severe boom and bust market. I said that when they were over-regulating over the past year and Voila!
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Fragmentation of the exchanges is the real problem here. Why should I provide "LIQUIDITY" to black pools and SigmaX ? No way as long as "price discovery" happens in "dark places"...
 
Quote from krazykarl:

A
Think about it: If someone buys 60 billion worth of e-mini instead of 60 million the systems need to go out and LOCATE all those contracts. While that's being done people see the large volume being purchased and their systems start reacting.
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I would like to think that INITIAL MARGIN REQUIREMENT WOULD KICK IN AND SYSTEM WOULD REFUSE THE TRADE.
 
Probably the HFT/Stat arb guys ran out of BP. I know I did. What a great 15 min that was.

Anyone who has a sell stop market on an off exchange was a dumbass, good thing nasdaq saved you.
 
Quote from TraDaToR:

Indeed...

"No bid" days are nothing new. HFT and electronic trading weren't there in 87.

In fact, electronic trading has reduced and certainly prevented real crashes in the last 15 years given the historic level of volatility during this period. IMO we would have had a bigger number of no bid days in a pit -like environment.
More...

I don't buy that.

If a price is based on liquidity, rather than fundamentals, and if both are removed, then maybe you get your .02 bids.
 
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This guy had a pretty interesting foresight on this subject matter almost a year ago. At the end of the clip he predicts a day like yesterday with HFT as the main cause is bound to happen.

"It didn't print; it just disappeared. How's that a liquidity, Mr. High Frequency Trader?"
 
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