HFT has destroyed the markets

Sir_Gallonhead
Sir_Gallonhead

HFT has destroyed the markets.

All urls found in this thread:
http://www.nanex.net/NxResearch/ResearchPage/1/
http://www.nanex.net/aqck2/4543.html
idontknow
idontknow

how so, HFT is reactive rather than proactive.

ZeroReborn
ZeroReborn

HFT extracts money from the system without creating any actual value.

TreeEater
TreeEater

more liquidity, more trades, better spots, stronger brokerages and insurance.

I fail to see your point. sure you can't arb like you used to but that was more destructive than hft methinks.

RumChicken
RumChicken

@TreeEater
more liquidity

implying that the liquidity on the books doesn't just disappear as soon as it gets close to the inside bid/offer

ZeroReborn
ZeroReborn

IEX will be growing in popularity now that the SEC has approved it.

Unlike other exchanges, IEX has instituted a 350-microsecond delay to execute trades, which the company says levels the playing field. Hunsader says data show that IEX has the highest percentage of trades filled at the midpoint between the bid and ask of any exchange, an indication of fairness.

BinaryMan
BinaryMan

@ZeroReborn
Hunsader is the fucking man. I love that guy

Nojokur
Nojokur

@ZeroReborn
Going out of your way to encourage human daytraders is like admitting you are running a fucking casino. What a joke.

Fried_Sushi
Fried_Sushi

@Nojokur
"human daytraders" are a small percentage of the volume. What about funds and other institutional investors?

Crazy_Nice
Crazy_Nice

@Fried_Sushi
Institutional investors don't DAYtrade, they don't give a fuck about HFT bots.

Evil_kitten
Evil_kitten

@Crazy_Nice
They do place trades during the day. Of course they care about the HFT bots. If you were losing half a cent per share on a million share order, you'd be pretty pissed.

SomethingNew
SomethingNew

@Crazy_Nice
And also yes, institutional investors do "daytrade". You've obviously never actually watched any tape or worked in trading...

askme
askme

@Evil_kitten
If they do they are institutional gamblers, not investors. Only the casino cares about their existence because they milk them for commissions.

hairygrape
hairygrape

@askme
fell for the "trading is gambling" ideology

You do realize that most major banks have a proprietary trading desk, right?

Emberfire
Emberfire

@hairygrape
if an institution does it, it must mean the practice is beneficial for a market as a whole

Bear in mind I don't think gambling should be illegal. I just don't care if their existence is threatened and no one should go out of their way to accommodate them.

VisualMaster
VisualMaster

@hairygrape
Not since the Volcker rule.

SniperGod
SniperGod

@ZeroReborn
[citation needed]

Oh hi there trader's dilemma. It's been a while. Fuck off.

Dreamworx
Dreamworx

@VisualMaster
The Volcker rule allows banks to contribute to their funds as long as it's under 3% of the total capital. So yes, they still run these funds.

SomethingNew
SomethingNew

@Emberfire
invest in a mutual fund or ETF in your IRA
fund manager has to pay an extra 1% every time he tries to buy a block of stock
this happens for 30-40 years until you pull your money out for retirement
thinking that doesn't have an effect on your personal returns

Ok, good luck with that.

whereismyname
whereismyname

@SomethingNew
has to pay an extra 1%
Due to what?

takes2long
takes2long

Is there any actual evidence aside from 1-2 isolated meltdowns that shows HFT does any damage?

Burnblaze
Burnblaze

@takes2long
http://www.nanex.net/NxResearch/ResearchPage/1/

Knock yourself out.

Emberburn
Emberburn

@takes2long
http://www.nanex.net/aqck2/4543.html

have you ever been caught in a flash crash? not fun.

SniperGod
SniperGod

@whereismyname
Boss tells me to buy 100k share in Exxon
See a 100k offer sitting there
Hit the buy key
Order gets partially filled, and the block offer disappears
Block offer reappears at a higher price
repeat

thus is the life of an execution trader

TechHater
TechHater

@takes2long

Nothing to see here people, HFT is fine, move along...

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