Front Running, Flash Orders, or Blackbox/Algorithmic Manipulation?
- Thread starter pacific7
- Start date
_________________________________________________Quote from eusdaiki:
Hmm... looks like I was wrong on this one... http://www.directedge.com/frequently_asked_questions.aspx?s=about
Regarding sending orders so that they don't interact with FLASH,
NSDQ SCNF, & SGNF orders, don't FLASH.
EDGX/A ROUX & ROUE orders don't FLASH either.
If sterling doesn't have em... maybe you want to drop sterling
Maybe i do need another platform. i don't have these NSDQ destinations or ROUE. Out of curiousity, what platform/broker do you use?
I am trying to understand what you are saying?
To keep things simply I have a dozen traders here in Nassau.
We decide to play the futures today. We place working orders, they are submitted and excepted by the broker and so on.
Are you saying the likes of GS have / has a right, to bump me out of queue and take my contract?
w [/B][/QUOTE]
No, my statement wasn't clear. I wanted to say that as soon as
your order is displayed in the book, those algos have the right to step in front of you( improving your bid/ask 1 increment ). What is important is that algos can only improve after your order is placed and not before it has reached the book.
pacific7,
That comment was an attempt at some inside humor between myself and TripleD.
S.T.K. is an acronym that will simply remind TripleDTrader going forward that in order to be the best, you have to beat the best, and that just doesnât seem likely anytime soon ⦠does it Trip?
Getting âHemskyâdâ loosely means taking it where the sun donât shine, or, where the shine does shine if thatâs somebodyâs preference.
U.S. CFTC and U.K. FSA Will Jointly Monitor Markets (Update1)
Share | Email | Print | A A A
By Caroline Binham
Aug. 20 (Bloomberg) -- The U.S. Commodities Futures Trading Commission and the U.K. Financial Services Authority said they are boosting cooperation in their supervision of energy markets.
Each agency will also be able to conduct on-site visits of exchanges in the otherâs jurisdiction as well as coordinate âemergency actionâ under the terms of the agreement, which covers U.S.-linked energy futures contracts. The CFTC will be able to inspect IntercontinentalExchance Inc.âs London market and the FSA can gather information at the New York Mercantile Exchange under the terms of the arrangement.
âWe must effectively utilize all existing powers to ensure that futures markets remain free of manipulation, fraud or other market abuses,â said CFTC Chairman Gary Gensler in a statement. âAchieving this goal requires a coordinated international response.â
Trans-Atlantic differences in commodity-trading regulations were highlighted by U.S. and U.K. lawmakers over the past year. A former CFTC official said last year that the FSAâs lack of restrictions led to excessive speculation. FSA Chairman Adair Turner told a parliamentary committee in July 2008 that supply and demand, not speculation, was responsible for then-record oil prices, contradicting some U.S. lawmakers.
Increased cooperation between regulations around the world has been sought in the wake of the worst financial crisis since the Great Depression. It was among the pledges by global lawmakers when they met in London in April at the Group of 20 Nationsâ summit.
Hedge-Fund Managers
âThis is a U.S.-U.K. relationship and clearly there is a European angle,â said Jonathan Herbst, a regulatory lawyer at London based Norton Rose LLP and a former FSA official. âThere have been sensitivities about a bilateral relationship but this just seems to be a practical relationship rather than one with legal ramifications. They want to send a message to the market of enhanced cooperation.â
The accord follows a meeting at the FSA with hedge-fund mangers, oil companies and traders earlier this month about whether U.K. regulation is transparent enough. Across the Atlantic, the CFTC and the Securities and Exchange Commission today said they would discuss harmonizing regulatory policies.
âIt is important that we continue to pursue all means to maintain fair, orderly and efficient markets, both nationally and internationally,â the FSAâs Turner said in a statement. âThe measures announced today will help to facilitate coordinated action.â
âRigorous Surveillanceâ
While the FSA doesnât mandate limits on a traderâs positions, it requires regulated companies to conform to general principles, including maintaining adequate controls and âposition management.â
âICE Futures Europe has a 30-year track record as a regulated futures exchange performing rigorous surveillance, regulatory and compliance functions,â said David Peniket, president of ICE Futures Europe in a statement. âWe will continue to work with the FSA and CFTC to ensure full compliance.â
ICE already provides trade data to the CFTC through a deal with the FSA.
Crude oil rose 57 percent in the first six months of the year. The contract for September delivery advanced 2 cents, or 0.03 percent, to $72.44 a barrel on the New York Mercantile Exchange as of 12:12 p.m. local time today.
To contact the reporters on this story: Caroline Binham in London at cbinham@bloomberg.net
Last Updated: August 20, 2009 13:18 EDT
Share | Email | Print | A A A
By Caroline Binham
Aug. 20 (Bloomberg) -- The U.S. Commodities Futures Trading Commission and the U.K. Financial Services Authority said they are boosting cooperation in their supervision of energy markets.
Each agency will also be able to conduct on-site visits of exchanges in the otherâs jurisdiction as well as coordinate âemergency actionâ under the terms of the agreement, which covers U.S.-linked energy futures contracts. The CFTC will be able to inspect IntercontinentalExchance Inc.âs London market and the FSA can gather information at the New York Mercantile Exchange under the terms of the arrangement.
âWe must effectively utilize all existing powers to ensure that futures markets remain free of manipulation, fraud or other market abuses,â said CFTC Chairman Gary Gensler in a statement. âAchieving this goal requires a coordinated international response.â
Trans-Atlantic differences in commodity-trading regulations were highlighted by U.S. and U.K. lawmakers over the past year. A former CFTC official said last year that the FSAâs lack of restrictions led to excessive speculation. FSA Chairman Adair Turner told a parliamentary committee in July 2008 that supply and demand, not speculation, was responsible for then-record oil prices, contradicting some U.S. lawmakers.
Increased cooperation between regulations around the world has been sought in the wake of the worst financial crisis since the Great Depression. It was among the pledges by global lawmakers when they met in London in April at the Group of 20 Nationsâ summit.
Hedge-Fund Managers
âThis is a U.S.-U.K. relationship and clearly there is a European angle,â said Jonathan Herbst, a regulatory lawyer at London based Norton Rose LLP and a former FSA official. âThere have been sensitivities about a bilateral relationship but this just seems to be a practical relationship rather than one with legal ramifications. They want to send a message to the market of enhanced cooperation.â
The accord follows a meeting at the FSA with hedge-fund mangers, oil companies and traders earlier this month about whether U.K. regulation is transparent enough. Across the Atlantic, the CFTC and the Securities and Exchange Commission today said they would discuss harmonizing regulatory policies.
âIt is important that we continue to pursue all means to maintain fair, orderly and efficient markets, both nationally and internationally,â the FSAâs Turner said in a statement. âThe measures announced today will help to facilitate coordinated action.â
âRigorous Surveillanceâ
While the FSA doesnât mandate limits on a traderâs positions, it requires regulated companies to conform to general principles, including maintaining adequate controls and âposition management.â
âICE Futures Europe has a 30-year track record as a regulated futures exchange performing rigorous surveillance, regulatory and compliance functions,â said David Peniket, president of ICE Futures Europe in a statement. âWe will continue to work with the FSA and CFTC to ensure full compliance.â
ICE already provides trade data to the CFTC through a deal with the FSA.
Crude oil rose 57 percent in the first six months of the year. The contract for September delivery advanced 2 cents, or 0.03 percent, to $72.44 a barrel on the New York Mercantile Exchange as of 12:12 p.m. local time today.
To contact the reporters on this story: Caroline Binham in London at cbinham@bloomberg.net
Last Updated: August 20, 2009 13:18 EDT
Lately there are articles everywhere surfaces showing additional exemptions GS received and or compliance standards breached in relation to other Financial Institutions. By breached I am speaking about compliance issues that most Banks and Brokers must follow that GS received exemption from prior and during the supposed transfer to receiving a Bank status.
Todate they still do not have to play by the same rules as their colleagues.
GS has been given a free pass and get out of jail free card.
There are presently discussions with lawyers and the regulatory groups to fully define customer confidentuality and or conflict of interest obligations. Arms length transactions, boundaries of subsidiaries. The goal is to be legally able to further additionally share information that will give one or more of the subs the ability to trade under the pretense of a hedge when in reality it is imo inside trading.
Over the next month as the news starts to leak out we will experience imo extreme volitility similiar to last fall. I would anticipate low volume and premorning gaps will assist in covering of shorts and longs depending on the sentiment direction.
The traders here are now restricting their trades to certain hours, less position trading and trading the news for the few minutes there is volitility with moves outside the overall sentiment channel.
w
Todate they still do not have to play by the same rules as their colleagues.
GS has been given a free pass and get out of jail free card.
There are presently discussions with lawyers and the regulatory groups to fully define customer confidentuality and or conflict of interest obligations. Arms length transactions, boundaries of subsidiaries. The goal is to be legally able to further additionally share information that will give one or more of the subs the ability to trade under the pretense of a hedge when in reality it is imo inside trading.
Over the next month as the news starts to leak out we will experience imo extreme volitility similiar to last fall. I would anticipate low volume and premorning gaps will assist in covering of shorts and longs depending on the sentiment direction.
The traders here are now restricting their trades to certain hours, less position trading and trading the news for the few minutes there is volitility with moves outside the overall sentiment channel.
w