For those in Equities, an extraordinary piece making the rounds among serious traders:
http://www.nanex.net/aqck2/4661.html
http://www.nanex.net/aqck2/4661.html
Spoofing becoming illegal
- Thread starter TraDaToR
- Start date
I love Nanex's data feed, and their research is top notch.... I just wish they would let the data speak for itself instead of littering it with anti HFT propoganda. As for HFT's rigging the market.... I dont think this conversation can advance until people acknowledge that the HFTs are taking advantage of structural issues imposed by the regulatory agencies that are supposed to protect us. HFT is not doing anything illegal, and each and every one of us could do the same thing if we brought enough cheddar to the table. Until the SEC gets rid of reg nms, wouldn't using routing orders directly to a particular exchange "solve" this issue?
P.S, I steer clear of equities for this reason.
P.S, I steer clear of equities for this reason.
All that shows is that the trader used an order router that leaked information.
The problem is that the data does not speak for itself. Eric is well known for jumping to conclusions and creating hysteria where it doesn't always need to be.
Well, I think the evidence he presented clearly shows that market fragmentation is the cause of orders not being executed. That data, when broken down they way it was speaks for itself. But his blame for the problem is misdirected at HFTs, when it should be directed at big brother.
I guess I can agree with that. I'm not a fan of the fragmentation. However, I am an even less of a fan of Eric. Anytime I see an article of his quoted, it gets me going.
So many are so quick to throw HFT under the bus and Eric seems to be the ringleader of misinformation.I guess I can agree with that. I'm not a fan of the fragmentation. However, I am an even less of a fan of Eric. Anytime I see an article of his quoted, it gets me going.
Yeah, and I agree with that. I get a little worked up when people bash HFT too (and I'm not an HFT guy... although I would be if I had the resources). In my opinion, it usually comes from people who refuse to adapt to current market conditions. People who want market socialism. HFT's aren't cheating, the govt is. And those who fail to adapt will (and should) become the prey of those who are better hunters.
Interesting article by John Arnold on spoofing at Traders Magazine today, "It Takes a Spoofer to Keep the Speed Traders Honest":
http://www.tradersmagazine.com/news...o-keep-the-speed-traders-honest-113377-1.html
http://www.tradersmagazine.com/news...o-keep-the-speed-traders-honest-113377-1.html
The only party that is touched by the spoofer’s deception is the front-running HFT, whose strategies are harmful to every other market participant.
Im no expert, just a regular guy, who use to trade a lot of stocks. A practitioner.
With 8 years of school education and not native english speaker..
But even to me this statement is DUMB or idiotic. Take your pick. Fucking lunatics....
Im no expert, just a regular guy, who use to trade a lot of stocks. A practitioner.
With 8 years of school education and not native english speaker..
But even to me this statement is DUMB or idiotic. Take your pick. Fucking lunatics....
Here is how it's goes in real life-you place your buy order, naively believe that you will be filled at bid. 100 shares at 10, ask-100 shares at 10.05. They you go. Your bid is the best, you sit and wait.....bam! 10000 shares appeared at same price at bid... what are your chances of getting filled at bid? NONE. Zero. Soo...you decide to buy at ask you hit 10.05, but before your order did reached the exchange-trade occured and someone grabbed those shares. You been sitting for minutes-no activity at all, but all of the sudden-there is whole lot of action around your pathetic buy of 100 shares. Now those 100 shares at 10.05 are gone and next offer is significantly higher. You buy at that ask and second later-they all gone. 10000 shares at bid is gone,asking price is lower and you are fucked. And that was a GOOD CASE. The worst case is when you tried to buy at 10.05-you got only 5 shares, rest is gone, someone bought them before you and now you stuck with partially filled order and at least DOUBLE COMISSIONS. How many times I have to repeat this simple example? If one says that no one is harmed, but spoof or hft is a true MORON. We been talking about this shit for at least 5 -6 years....pathetic