What are the HFT scum up to?

Quote from monstimal:

The solution is the exchange can block your port from sending messages if you are coming close to overloading their system. They already do it...
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Some exchanges do, and have always done this.

A max messages / second limit.

Pretty simple really.
 
Quote from WinstonTJ:

The burger king analogy is wrong in that once a quote hits the tape it's a real/live order. Once you tell the cashier you want 367 #5 combo meals she'll ask you to pay for it - if you don't pay it never hits the kitchen....
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Nah ..

It's more like:

- The last burger was bought for $1.00.

- You get to the front of the line, and bid $0.99 for the next burger.

- The chick at the register gets pissed, she's about to end shift and doesn't have time for this crap. She doesn't want to hold up the line, so eventually, she crosses the spread, comes to you and fills your order at $0.99. (Muppet).

- You then take the burger to the back of the line and offer it to some impatient dude at $1.01.

Made yourself a 2c spread.
 
Here's a nice example today of massive quote stuffing in PRSS. There were 80k quotes in 5 seconds. PRSS hardly trades so these guys were slowing quotes in other stocks on the same server to gain advantage over other hft's. This is quote manipulation in it's finest, the SEC just doesn't have the intelligence to crack down on it.
 

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