It's like a pest that will kill everything on its way, says Michael Lewis and Jon Stewart - Trading stocks, futures, options and other exchange instruments

techmac 2014.04.02 13:44 #11

And immediately we have the result : forex trading is getting killed.

HFT is a disease not trading. It is like a pest that will kill everything on its way if you are not fast enough to duck. Good for market efficiency my ... They simply allowed the big ones to steal from the little ones legally

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thenews 2014.04.02 14:33 #12

Jon Stewart On HFT: "It's Not American; It's Not Even Capitalism. It's Cheating"

Jon Stewart is stunned by the world of HFT (where "stock exchanges sell the right to advance information to high frequency traders ") and the mainstream media's immediate jump to defend it "as good for us", but as Michael Lewis explains "anyone whose livelihood is dependent on Wall Street [from CNBC, FOX and even the SEC] is invested in this... it sounds like a conspiracy."

In this excellent interview, The Daily Show doubter asks "we have set a standard for share buying (you can't but 1/100th of a share) so why not set a standard for frequency of trading?" Lewis stoic response sums up our world perfectly, "in a sane world, we would... but the money is too big," and adds that indeed that is what IEX is doing. The HFTs "function on volume and volatility" alone and "they know the prices before you do... which is illegal if it's a person, but as a computer, meh?"

Michael Lewis and Jon Stewart Part 1: What is HFT? "HFT is a middle-man in a transaction they have no business being in.. it is totally unnecessary Wall Street intermediation" How does it work? "The stock exchanges in this country sell the right to advance information to high frequency traders " What is front-running? "front-running as a person is illegal, but as a computer, meh"

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myname 2014.04.02 18:10 #13

Now all the "experts" are talking that it is bad. I remember the times when they were praising it as a way to add stability to market.

If you told then that HFT colocation is the worse kind of a fraud, they would tell you that you are crazy. And now even I start to believe that not just 95% of traders are losing : this HFT should be killed

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Tomcat98 2014.04.02 20:05 #14

Hi,

Some more in that field now for FX Markets

Presenting The Next Market Rigged By High Frequency Trading | Zero Hedge

and

This Is The One Financial Product Now Targeted By The HFT Swarm | Zero Hedge

Any futur for the retail FX guy?

New Meta Trader software should take that into account.

Unless with a strong strategy...wondering...

Tomcat98

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techmac 2014.04.02 20:52 #15

Man, this is out of control

We have been suckered for years

thenews 2014.04.02 21:18 #16

Massachusetts Surveys Investment Firms on High-Frequency Trading

Massachusetts’ chief securities regulator is surveying more than 1,000 investment advisers in the state about high-frequency trading as scrutiny of the strategy increases.

William F. Galvin sent inquiries on March 25 to investment advisers, including private equity and hedge-fund firms, requesting they complete a survey about their practices related to high-frequency trading, such as their use of direct data feeds and whether they have a computer server located with any exchange’s data center.

“With some concerns being raised about high-frequency trading, this is an effort to learn the extent of the practice,” Brian McNiff, a spokesman for the securities division, said in an e-mail. McNiff said he didn’t know if other states were also surveying advisers.

Controversy around high-frequency trading, a term describing strategies that use lightning-fast computers to eke out profits, ignited this week after author Michael Lewis published “Flash Boys” and said in the book that U.S. equity markets are rigged.

New York Attorney General Eric Schneiderman opened an investigation last month into whether U.S. stock exchanges provide high-frequency traders with improper advantages and is examining the sale of products that offer faster access to data than what’s typically available to the public. The Federal Bureau of Investigation also is looking into the practices and has openly solicited traders and stock-exchange workers to blow the whistle on possible front-running and manipulation via high-speed computers.

The Holy Grail Of Is forex market controlled CFTC Investigates The "Secret"

myname 2014.04.02 22:39 #17

Tomcat98:
Hi,

Some more in that field now for FX Markets

Presenting The Next Market Rigged By High Frequency Trading | Zero Hedge

and

This Is The One Financial Product Now Targeted By The HFT Swarm | Zero Hedge

Any futur for the retail FX guy?

New Meta Trader software should take that into account.

Unless with a strong strategy...wondering...

Tomcat98

metatrader will never be capable of trading in the same ligue with HFT. That is the company that make plugins to delay execution to to speed it up. See this : https://www.mql5.com/en/forum or this https://www.mql5.com/en/forum/178383/page68

Tomcat98 2014.04.02 22:45 #18

nbtrading:
metatrader will never be capable of trading in the same ligue with HFT. That is the company that make plugins to delay execution to to speed it up. See this : https://www.mql5.com/en/forum or this https://www.mql5.com/en/forum/178383/page68

Hi nbtrading,

Ooh, I already know that; btw thanks for your post.

What we can expect now is that plugins do not bring us to much delay.

Tks

Tomcat98

thenews 2014.04.03 09:59 #19

Lewis Explains The Casino: "Why Are You Even Arguing" That This Is Not Rigged?

Round 2 of the HFT vs Reality death match just took place on Bloomberg TV. Once again the clear winner was Katsuyama and Lewis version of the real world as Manoj Narang finally lost all credibility with the mind-0bumbing comment that "speed matters less in today's market than it has ever mattered." But the Tradeworx CEO was a background singer compared to Michael Lewis who explained in his clearest analogy yet how the casino works and then devoured the anchor's constant efforts to play down the "rigged" market perspective... "it's very clear that people are being front run in the market... so, why are you even arguing about this?"

Plenty of good stuff in the clip but this little exchange summed up the problem perfectly...

_________________________

Lewis explains the game, exposes the rigging, and slams the mainstream media's "defense" of this...

LEWIS: So of course the tourists get fleeced all the time in the poker games, because they don't know the deck is rigged. The poker players pay the casino a cut of what they make. The casinos, operators, pay the tour group - the tour group company money to bring in the tourists.
So in this case, casino's the exchange, the poker players are the high-frequency traders, and the tour group operators are the banks and the brokers that handle the stock market orders. And I think the analogy is pretty close. So is that rigged? Is that a rigged game? I think it is a rigged game.

SCHATZKER: Well, it's rigged only inasmuch as...

LEWIS: Why are you so invested in the idea this is fair? Why are you even arguing about this? It's so clear.

SCHATZKER: Me?

LEWIS: Yes, you seem to be. I mean, it's very interesting. But you seem to be - you can see, it's very clear that people are being front run in the market. There's plenty of evidence in the book.

SCHATZKER: Their orders are being anticipated...

LEWIS: Anticipated and run in front of, that's right.

Shocked...

And then Manoj Narang comes in... and the long words surge and the credibility plummets... "there are so many assertions that are provably false... oh my gosh so many..." crickets... and then finishes off all credibility with "speed matters less in today's market than it has ever mattered."

HFT Stock Manipulation In Action - page 2