Posts tagged High Frequency Trading

Bridges to Brooklyn, and Swamp Land in Florida

Do you believe the stories about the origin of the Flash Crash?  If you do, I have a bridge in NYC and some slightly damp land to sell you.  Yesterday, one person was fingered for the Flash Crash that occurred …






More on Trade Following Apps

With the democratization of Fin Tech, I am seeing more and more trade following app companies. The basic idea is unsophisticated traders can follow more sophisticated traders, learn and profit. There is a kickback to the sophisticated trader.  This is …






Prof Joseph Stiglitz Should Have Been On the HFT Panel

I don’t agree with Professor Joseph Stiglitz economic analysis very often.  I caucus with the classical economists, not the Tobin lead economists.  Even in the above video, my perception of some of his statements would lead us to disagree. However, …






Touring A Trading Room

Yesterday I had the opportunity to tour a trading room.  It’s not the first time, and won’t be the last.  Pods of computers with people behind them everywhere.  It was all men for those that are interested in “gender” stuff. …






Preserving the Floor Traders

Yesterday while we were driving I saw this article in the Wall Street.  Should floor trading be preserved?  Or, is it like the buggy whip manufacturers?  There is worry that $ICE will shut down the floor.  The $CME floor is …






Defending the For Profit Exchange

Amidst all the consternation about high frequency trading, a small segment of the population thinks the real root cause of the problem is for profit exchanges.  They couldn’t be more incorrect in their assumption.  It’s as if we reverted back …






Does The SEC Know What It’s Doing?

The SEC is going to ask HFT firms to register as broker dealers.  I don’t think that is right, nor is it close to any sort of solution.  The problem isn’t HFT.  The problem is market structure.  Registration only adds …






Does Any Exchange Run a Fair Market?

Michael Lewis book Flash Boys says the markets are rigged.  He is wrong. Rigged is the wrong word to use.  At the $CME annual meeting, CME said their markets weren’t rigged.  I agree with them.  But not being rigged doesn’t …






HFT Isn’t The Elephant In the Room

It seems all the attorney generals of the country read Michael Lewis book and subpoenaed high frequency traders.  Populism is not a way to regulate a market.  Nobel prize winning economist Joe Stiglitz put out a hasty paper encouraging a transaction …






The Realities of What HFT Does To Market Participants

Traders and brokers have a hard time commenting on public websites. There are rules against it from the SEC, CFTC, FINRA and other organizations. But they do comment privately to me in emails, and verbally. I’d love it if traders …






Innovation Should Make It Better

In the high frequency trading debate (HFT), proponents of HFT always trot out the same old meme’s.  “But, when it was floor traded the people on the floor had an advantage.”  Or, “Anyone can buy speed.”.  Or, “It’s more democratic.” …






FBI Investigates HFT; What Should They Do?

The media reports that the FBI is investigating high speed traders.  The basic investigation involves front running the market because the HFT participants have inside information.  They know orders ahead of the market.  Of course, this is true. Exchanges and …






Is The Market Rigged?

Here is the video from 60 Minutes. There is a lot in this video. There is some bias in the video as well. Michael Lewis has a book coming out, and he wants to sell it. No HFT traders or …






Professor Says We Should Slow Down HFT

Professor Eric Budesh at the University of Chicago has run a study on high speed trading.  In the study, he found that HFT doesn’t add liquidity to markets.  The market he tested it on was the S&P futures ($ES_F) contract …






How Would You Vote On This Proxy?

Recently, I was part of a piece that was posted at Futures Magazine.  Obviously, I am very disappointed with the way that $CME is trying to backdoor the B shares.  I is my current intent to vote NO on the …






Treasuries Wild? Wait Until the Fed Really Tapers

Yesterday a reader sent me an email.  He is going to remain anonymous, but he asked me to write about what happened in the US Treasuries yesterday.  I put a request out on Twitter and Stocktwits but I think few …






Marginal Volatility Erodes Confidence

People ask me, “What’s changed in the market?”.  Certainly, lots of self evident changes.  Higher levels of regulation, which is more and more incompetent.  The face of trading has changed from human to computer.  Speed. But, what’s really changed in …