SEC to Congress: Nonsense, the markets are not rigged.

[Clubber Lang]

Trader should start using the broker that provides adequate technology and/or routing options. As simple as this.

LOL. OK.

It's clear that you have no clue how order routing works or that NSDQ, EDGX, BATS, and most other Exchanges/ECN's allow HFT algos to pull their order internally before you can hit it....and let's not even get into what happens after your order is rerouted.

 

[Clubber Lang]

You can use level II to see where the liquidity is, how many shares you are likely able to get, and route directly. Do you even trade?

Idiot post of the year.

Level II. ROTFLMAO!!!

That's awesome. LOL. I might take my time machine back to 2000 when level II quotes actually meant something...you know, before super SOES, and then Super Montage, decimals and then sub decimal shaving, oh and then this little thing called HFT.

Thanks for the laugh you clown. Go back to your etrade platform and trade 200 shares of SIRI so you can "see where the liquidity is" on your Level II.

 

[d138]

Idiot post of the year.

IIt's clear that you have no clue how order routing works or that NSDQ, EDGX, BATS,

Well, it's clear you choose to insult people who are trying to help you. Good luck with your trading, and life

 

[Tsing Tao]

Worst SEC-Chmn imaginable... other than putting John Mack in there.

I have to think back a long ways, but I'm trying to remember when the SEC was actually functioning as the agency is was designed to be. Any ideas?

 

[Clubber Lang]

Well, it's clear you choose to insult people who are trying to help you. Good luck with your trading, and life

Thank you.

I never insulted you. You combined two different posts meant for different users.

Best of luck to you as well.

 

[StarDust9182]

I have to think back a long ways, but I'm trying to remember when the SEC was actually functioning as the agency is was designed to be. Any ideas?

Before late 80s and early 90s. Back then, the concern was getting robbed by specialists and MMs and getting bad fills. However, back then I could fill larger amounts much more reliably than I can today. It cost a lot then though.

Other concerns were a sneaking suspicion that stops were being run at times. The agencies told us then that they took a hard line against these kinds of activities. It all sounds a lot like now. It is a media war of truth vs hard to prove. Remember if crime doesn't pay, then there is no reason for evil to triumph.

When the savings and loan crisis hit, William Black and the SEC went after them hard. The keating 5 was all the rage and one of those is still around today in power. William Black wrote a great book about the crisis - http://www.amazon.ca/The-Best-Way-Rob-Bank/dp/0292721390 which I have signed by him and on my shelf. He has not been particularly complimentary about the latest 2008 meltdown. So far no book has appeared like "the best way to rob an exchange is to own one".

I recall reading somewhere Al Capone actually owned some judges to help with good quality decisions which was only discovered when one spoke out upon retiring. A big scandal. Of course that would never happen today. (Tough times - the mafia has had to layoff people just like the corporations.)

10000 years ago we moved from hunter gatherers to farming and needed someone to look after our grain and distribute it fairly. We are still looking for saints to help us out. Not much luck so far- there is a shortage of skilled saint labor.

So the answer might be when Adam and Eve were in the garden of Eden and their broker (the snake) came to help them out.

 

[StarDust9182]

HFT lowers stat-vol but adds microstructure vol. Worst possible outcome unless you're a low-freq player in convexity (options).

+1

This comment show an excellent depth of market understanding. Day traders live and die by its implications.

http://www.priceactionlab.com/Blog/2013/11/some-intraday-futures-trading-realities/

 

[StarDust9182]

Boy am I confused:

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541706507#.U2Jy8flklJh

One day markets are said to be rigged, but next they are said not to be. Hellooooooo ...... Is anyone out there?

I guess I lost something in the translation: http://www.youtube.com/watch?v=j4XT-l-_3y0

 

[ammo]

Now wholly-owned subsidiaries of IntercontinentalExchange Inc., NYSE, NYSE Arca, NYSE MKT, and Archipelago Securities have consented to the SEC’s order without admitting or denying the findings. They agreed to collectively pay the penalty of $4.5 million,.......that fine is a joke

 

[StarDust9182]

Now wholly-owned subsidiaries of IntercontinentalExchange Inc., NYSE, NYSE Arca, NYSE MKT, and Archipelago Securities have consented to the SEC’s order without admitting or denying the findings. They agreed to collectively pay the penalty of $4.5 million,.......that fine is a joke

For background, I believe I read an estimate of about 160 million a day being pulled out by HFT. (That seems too high to me) Using Vicirek's number of 15 trillion market capital we get 160 M by 52 weeks by 5 days = 41 billion a year and 41 B/15T is about .3% - hopefully someone will check my work.

Since the HFT firms insist we are getting such a great deal for their liquidity services since the dark days pre-2000, it makes me wonder just how much we USED to pay for MM services. 40 years of a huge amount (for services rendered) might certainly explain the great growth of the banking financial industry.

Perhaps a more reasonable fine is about .3% of 160 million a day or 500,000 a day while they are in business. (Think of it as the people's brokerage bill for bailing them out in 2008.) If they say that is too much to pay, then how does that square with them taking that much out of the people's trades? After all we are providing liquidity for them, shouldn't that be worth something?