Hi guys,
I know it's "against the rules" to trade against yourself, with multiple accounts. But, does anyone have specifics? A link to the actual regulations?
I'm asking because I run multiple, independent strategies on the same instruments. To keep things simple/fast, I don't communicate between the multiple strategies... it's conceivable that two pieces of code might end up trading between each other. Is that really something you may get punished for?
I'm just not sure how this rule is viable or reasonable. I mean, imagine what if I'm a billion dollar hedge fund... and on the one hand, I have one manager working a big sell order over the course of a day via VWAP. On the other hand, I buy some on a discretionary basis because I see an opportunity... and I end up crossing against myself. That doesn't seem unlikely at all.
Any thoughts?
I know it's "against the rules" to trade against yourself, with multiple accounts. But, does anyone have specifics? A link to the actual regulations?
I'm asking because I run multiple, independent strategies on the same instruments. To keep things simple/fast, I don't communicate between the multiple strategies... it's conceivable that two pieces of code might end up trading between each other. Is that really something you may get punished for?
I'm just not sure how this rule is viable or reasonable. I mean, imagine what if I'm a billion dollar hedge fund... and on the one hand, I have one manager working a big sell order over the course of a day via VWAP. On the other hand, I buy some on a discretionary basis because I see an opportunity... and I end up crossing against myself. That doesn't seem unlikely at all.
Any thoughts?