HFT has destroyed the markets.
HFT has destroyed the markets
how so, HFT is reactive rather than proactive.
HFT extracts money from the system without creating any actual value.
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.
implying that the liquidity on the books doesn't just disappear as soon as it gets close to the inside bid/offer
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.
Hunsader is the fucking man. I love that guy
Going out of your way to encourage human daytraders is like admitting you are running a fucking casino. What a joke.
"human daytraders" are a small percentage of the volume. What about funds and other institutional investors?
Institutional investors don't DAYtrade, they don't give a fuck about HFT bots.
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.
And also yes, institutional investors do "daytrade". You've obviously never actually watched any tape or worked in trading...
If they do they are institutional gamblers, not investors. Only the casino cares about their existence because they milk them for commissions.
fell for the "trading is gambling" ideology
You do realize that most major banks have a proprietary trading desk, right?
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.
Not since the Volcker rule.
Oh hi there trader's dilemma. It's been a while. Fuck off.
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.
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.
has to pay an extra 1%
Due to what?
Is there any actual evidence aside from 1-2 isolated meltdowns that shows HFT does any damage?
have you ever been caught in a flash crash? not fun.
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
thus is the life of an execution trader
Nothing to see here people, HFT is fine, move along...