Banks aren't regulated? News to me.
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Bright Trading's new payout model
- Thread starter Maverick74
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Banks aren't regulated? News to me.
Quote from Maverick74:
Honestly, have the aliens landed? WTF. Do you know who Peter Muller is? He ran PDT. A proprietary trading group within Morgan Stanley. He was one of the biggest liquidity providers in the game. They were an HFT operation. The group made billions. HFT at all the investment banks and prop firms for that matter fall under proprietary trading.
i know who peter muller is, and in my opinion, having the equivalent of a phd in mathematics (his bio says he has only a ba from princeton, but i'm sure he's more than worthy of more lofty parchments) deems him worthy of making as much money in the financial markets as he wants. i don't remember it being written anywhere that capitalism is supposed to be fair and equitable, despite michael moore making a fool of himself taping wall street as a crime scene.
the best way to become the best is to learn from them. the opportunity is there, lights, anyone, you just have to be willing to do the work.
Quote from Lights:
Messhugunuh. the rule passed when they figured out the markets controlled by subpennying prop algo's.
Frankenstein. IT'S ALIVE!!!!
The rule passed because that's what politicians do when the public screams about something. Pass some worthless piece of legislation that has no hope of fixing the problem. Nothing new there.
let me ask you a question lights. please answer specifically.
1) exactly how should market makers (hft's whatever you want to call them) have handled may 6th with market orders coming down the pipe on ALL their stocks sweeping the book down 10-90%+ in seconds?
2) do you know what an ISO is? this was the primary tool used on the 6th, and they resulted in FILLS, not pulls.
you asked me if i did the research... i actually have. i had to research it, because i traded it and it was a fantastic example of an intraday black swan.
market makers got STUFFED that day. across the board in EVERYTHING. i trade full-auto prop, making markets, and i can say that I got completely STUFFED that day, capital completely maxed out (too early btw), and sat through a period of complete chaos until those sellers let up.
it wasn't about pulling bids, it was about sellers DESTROYING bids, DESTROYING bid books all the way down in a blink. over and over. in minutes and seconds. EVERYTHING. you couldn't even hedge. the fckin spoo pit was 10 handles spread! 10 HANDLES! why?! because they'd swept that too!
if you were making markets that day, you would KNOW. it wasn't as one-sided as you make out to be.
1) exactly how should market makers (hft's whatever you want to call them) have handled may 6th with market orders coming down the pipe on ALL their stocks sweeping the book down 10-90%+ in seconds?
2) do you know what an ISO is? this was the primary tool used on the 6th, and they resulted in FILLS, not pulls.
you asked me if i did the research... i actually have. i had to research it, because i traded it and it was a fantastic example of an intraday black swan.
market makers got STUFFED that day. across the board in EVERYTHING. i trade full-auto prop, making markets, and i can say that I got completely STUFFED that day, capital completely maxed out (too early btw), and sat through a period of complete chaos until those sellers let up.
it wasn't about pulling bids, it was about sellers DESTROYING bids, DESTROYING bid books all the way down in a blink. over and over. in minutes and seconds. EVERYTHING. you couldn't even hedge. the fckin spoo pit was 10 handles spread! 10 HANDLES! why?! because they'd swept that too!
if you were making markets that day, you would KNOW. it wasn't as one-sided as you make out to be.
Quote from Lights:
yeah of course. Banks print $100mm in market making each day cos they provide liquidity.
You do know that most of these banks were about a tick away from being insolvent in 2008 when the shit hit the fan. All those profits have risk associated with them. Who you should be mad at is our f*cking government that keeps bailing them out. Your anger Lights is directed in the wrong direction. These guys are not making risk free money. They are taking a lot of risk. Their drawdowns are huge. The problem here is not what they are doing, it's the fact they never have to pay the consequences when they are wrong (I'm speaking of the large investment banks).
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