Is Harris Sharpening His Knife???

Quote from riskarb:

Yeah, it seems that TT has a lot of transparency w.r.t. order placement. I don't see how the $.10 vig would alter the situation. I think Harris is modeling himself after this guy:

Hank Scorpio
More...
Why? Is he ultra-nice to his employees whilst being a global supervillain? Also, does he wear jeans with a sport-coat and drinks German beer? :D

PS. Did you get the link from the Quant with that handle on Wilmott?
 
This is realistic and believable...Thanks everyone for your posts and thanks to the thread author...I have read evey word with interest. Quite educational.

Quote from Runningbear:

If you were getting 10c a contract with no risk, why would you bother trading.

It's more likely that TT will continue to expand their partner program, becoming a back-end provider and simply capturing more of the order flow by progressively adding exchanges and new broker clients.

In three years time, you may find them offering as many exchanges as IB as well as providing managed and reliable backing-end infastructure to brokers compatible with all the major front ends. Ninja, Trademaven, X trader etc.

Runningbear
More...
 
Quote from FredBloggs:

we all know of harris brumfield - tt /xtrader ceo as well as being a bond trading gorilla.

but i just had a thought concerning all this md trader patent action thats been going down.....

as we know, he wants everyone who uses his md trader ladder concept to pay him 10c (or whatever) per r/t for EVERY licensed platform (user) that uses his technology - i.e. most of the futures traders out there.

the only way he can surely get an understanding of this is to get a line in on the order flow thats being created on these platforms - in other words, see everyones order flow, and thus SEE ALL RESTING ORDERS IN THE MARKET!!

am i either....

1/ some conspiracy nut
2/ ignorant of how the tt platform works
3/ had too much sunshine :)
4/ one smart cookie who wont be trading on any platform that sells out to the evil one.
5/ other - see comments below....
More...


Definitely #2...

Allow me to explain because there seems to be a lot of misunderstanding on this thread...

XTrader is client software that TT manufactures.

It talks to various servers, one for each exchange. (cme, cbot , etc...). TT calls these gateways.

Both the server and client software is sold to many different FCMs and other clearing members of the exchanges.

For example, i used to run a very small prop firm. I owned my own servers with direct connections to CME/Eurex/CBOT and LIFFE.

On these servers I ran TT gateway software.

On our trading (client) machines i ran xtrader.

When i place an order in XTrader it is sent to TT software running on my gateway. (a machine i control on my own private network that nobody else can see)

From there it is sent directly (over a t1 line typically) to the matching engine at the exchange - sometimes hopping through and exchange owned computer on the way.

Now the only people that know where my order are:

1) Me and my firm
2) The Exchange
3) My FCM (if i need one)

In my case I cleared my trades through FIMAT (my FCM) so they could see my orders (on most exchanges, sometimes they can only see my fills - they get this info from the exchange, not TT)

TT has no idea (and could care less) what my orders were.

there are probably a dozen FCMs and hundreds (thousands?) of people that have their own direct connections to the exchange.

OK now that is JUST for TT software NOT licensees.

People who license are just licensing the concept and have to report fills *in aggregate numbers* for payment of the licensing fee. But TT doesn't get to peek at every piece of server software they might have running out there in real time.

I hope this makes sense if it doesn't please ask me to clarify because seriously what you're suggesting is really not possible. (For TT)

Now the reason i didn't pick #1 is because realistically whenever a lot of money is at stake people cheat. But in this case it is really not possible for TT to do this, even if they embedded a virus in their software because most people firewall off their gateways so they really couldn't "phone home" even if TT wanted them to.

What *could* happen..(and i'm not suggesting that it is or ever has) is that somebody that was not ethical at a LARGE FCM or worse yet at the Exchange itself could spy on where orders/stops are resting. Hopefully FCMs and exchanges take measures to prevent that from happening and maybe its impossible because I am not familiar with their internal workings.

I think the biggest risk would probably be from an FCM but that is pretty wild speculation on my part.
 
thanks market hacker. that clears that one up & i can sleep at night :)


i agree 100% with your line:

Now the reason i didn't pick #1 is because realistically whenever a lot of money is at stake people cheat.

as for the rest of you - i left a career in software to pursue better riches trading. was this the right move after all ????

i think so cos trading is more fun and i dont have to get out of bed early every morning and the money is better for less hours worked. so why has harris gone the other way (and he was making more than i am trading at the moment)? grass is always greener i guess

the chances of succeeding at trading or starting a software company are about the same i think - because it all depends on the individual.
 
Quote from FredBloggs:

so why has harris gone the other way (and he was making more than i am trading at the moment)? grass is always greener i guess
More...


I don't know what you did in software of course, but I am assuming it wasn't something that allowed you to collect a dime for every contract traded. If that was the case you would have been foolish to quit that and start trading. Trading is difficult and the constant search for a new edge causes people to tire, so I can't blame him for taking the "sure thing". Talk about less work for more pay. He literally said to himself "If I had a dime for every time someone traded a contract..." :D
 
Quote from market_hacker:


Now the reason i didn't pick #1 is because realistically whenever a lot of money is at stake people cheat.
More...

Based on private comments I have received I would like to clarify what i meant by this statement.

I don't mean to imply that there is always rampant cheating when there is a lot of money at stake.

A more accurate statement would be:

Whenever there is a lot of money at stake, there is a strong incentive to cheat and it pays to keep your eyes open.

I am not personally aware of anything remotely like what FredBloggs has suggested happening in electronic futures. I think 99% of people are honest 99% of the time.

That said, when you hear about things like this its obviously going to make you wonder on occasion.
 
im not so sure.

remember what the comex did to the hunts....


remember what wall street analysts did to to the whole of the share buying public during the .com boom....


etc

etc

go talk to a forex trader who works for an investment bank - he'll tell you all about it, especially as there is no regulation in forex.

some people call it price discovery. others call it providing liquidity.
 
Quote from FredBloggs:

im not so sure.

remember what the comex did to the hunts....


remember what wall street analysts did to to the whole of the share buying public during the .com boom....


etc

etc

go talk to a forex trader who works for an investment bank - he'll tell you all about it, especially as there is no regulation in forex.

some people call it price discovery. others call it providing liquidity.
More...

I'm not sure what you're trying to say? Is this in response to what I wrote?
 
You must log in or register to reply here.
Back
Top