Front Running, Flash Orders, or Blackbox/Algorithmic Manipulation?

Quote from tripledtrader:

I agree that Flash is not the entire problem here. I am simply stating that I believe it goes on with Flash orders as well. I don't get any .0001 fills, because our orders are routed directly into exchange (not flashed). It's the retail customer that is being flashed. But, I make money by providing liquidity to retail, and if the retail order is flashed or thrown to these dark pools, I get less fills, and hence make less money.
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i see, so, basically what you're saying is that flash orders are helping retail traders (really buyside/liquidity takers), which are on the other side of your trades, by rewarding them with price improvement and rebates and stealing your order flow.

yea, what a scam. luckily they'll be banned shortly and you won't have to be as competitive.
 
That's what is important, algos have the right to go lightning fast to take your edge after your order is submitted, it's called competition. [/B][/QUOTE]

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?

The issue is more with the priority certain customers receive over the every day trader. All brokers will execute their primary customers first. The traders here have since August of last year experience more part fills, flow throughs, BD,ECN and the list goes on BS.
Even we as a small Trading Firm receive calls occassionally whereby they are interested in our positions (stocks / options) to ensure if we cover or exit a position we do not disrupt the day's trading.

Big Brother sees all. The make the rules and provide the loop holes from the first draft to inception.

I agree with the ability to hide orders and once touched an additional volume as a resistance / support kicks in. I agree with the ability to spend money on research and build the fastest computers to assist in executions. I do not agree with Flash Orders whereby positions are provided too others at my expense without me having the ability to receive the same information. The old boys club.

Your Broker has alarms that alert them when an account gets close to margin ie 10 percent, 5 percent and then margin calls. Imagine they take that information and pass on the information to each other. That information provides all with the overall sentiment of the market plus the working orders, pending non executed and margin percent. This is done by just stating that our overall position of margin calls based upon current bid ask is x percent. GS for one then has the ability based upon the existing day move will then will push the market in one direction or the other. Basic information necessary to provide a short squeeze or sell off with proprietary information not being breached but capitalized on as it is given as a percentage.

w
 
Quote from propseeker:

i see, so, basically what you're saying is that flash orders are helping retail traders (really buyside/liquidity takers), which are on the other side of your trades, by rewarding them with price improvement and rebates and stealing your order flow.

yea, what a scam. luckily they'll be banned shortly and you won't have to be as competitive.
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Yeah, let's reward the retail trader with .0001/share and compromise the entire NBBO. Makes alot of sense.
 
Quote from pacific7:

GS also owns Direct Edge, the last holdout to not offer on it's own to ban the use of of the flash orders.
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Actually... Knight Owns Direct EDGE
 
Quote from tripledtrader:

Yeah, let's reward the retail trader with .0001/share and compromise the entire NBBO. Makes alot of sense.
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they get paid for the add too... it decreased my transaction costs when removing by .5 cps. which really is pretty outstanding.

fact: the only thing being compromised was uncompetitive market makers and uncompetitive exchanges bottom line.

'compromising the nbbo', heh, k.
 
Quote from pacific7:

Quote from black diamond:
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Red_Inc or Black Diamond

Just out of curiousity, where do you trade and under what platform that gives you the option to flash your order (or not). I use sterling and do not have this option?
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Globex through IB, Globex doesn't have flash orders so there is no option. I am not affected by flash orders at all, just an interested observer.
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Quote from black diamond:

Globex through IB, Globex doesn't have flash orders so there is no option. I am not affected by flash orders at all, just an interested observer.
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Oh, that's right.

Thanks for the response anyway!
 
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