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Lawrence Fuller

 
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  • Of Course The Market Is Rigged! [View article]
    Very much appreciate the comment, thank you for reading blueice.
    May 5 09:35 AM | 1 Like Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    It was definitely sarcasm...I'm hoping for less complexity and not more :) I loved the boring 1990s.
    Apr 14 11:41 AM | Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Thanks for your insight and all of your comments. I think that since the brightest minds are already working for the HFT industry, that's where the SEC has to go to obtain the intelligence to monitor them. But that makes no sense as the blog points out, because the service they are using thru MIDAS are slower than what is being used now.

    From an investment standpoint, I just view this as a factor that subdues volatility for periods of time, and then ramps it up tremendously over shorter periods of time.... so for me, maintaining more liquidity on an ongoing basis to capitalize on opportunities like we are seeing now on both sides of the market is the way to play it.
    Apr 14 11:39 AM | Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Felix,
    Narang is at the heart of the problem in my mind. I've never known the gov't to put our competitive RFPs at any level - its part of the pay to play politics that makes the world go round, correct?
    I learned a great deal about HFT after reading "Broken Markets" in the summer of 2012 by the founders of Themis. Those guys go into some very granular detail about how markets work in their book. I highly recommend it, as its a text book on trading markets, rather than this latest book that came out, which I haven't read.
    Apr 13 02:14 PM | Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Black Monday was a derivatives-induced decline, though that debate continues to this day, but "portfolio insurance" was the culprit. And plenty of specialists didn't do so well that day, I can assure you.
    Apr 12 10:43 PM | Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Hi KenAMac,

    I think the most disturbing tactic is layering. It has happened in the S&P futures quite often. HFTs buy one sized order then float much larger orders to buy at much higher prices that are cancelled shortly after your buy... designed to move the market upward, then you are selling what was just purchased at higher prices. Done over and over again.
    Apr 12 05:39 PM | 1 Like Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Hi TrstanLamb,
    HFTs provide liquidity, until it is needed. This is the big difference between the market makers of old and today. There were a whole other set of problem with the old specialist system, don't get me wrong, but those guys were required to be there as buyers if everyone wanted to sell. THATS THE DIFFERENCE. HFT's provide liquidity just the way you provide liquidity on a day when you are buying of selling a stock. Volume bring liquidity, but it is volume from many, many different participants with different strategies and time horizons that brings REAL liquidity. When you have HFTs that all share the same time horizon and very similar strategies accounting for 50, 60 and sometimes 70% of daily volume, that is not liquidity under the surface. That is the danger. When there is a geo-political event, or some other type of situation when this group decides to vacate - you have a liquidity void. It has happened for short period of time during the events I mentioned in the article. It has happened frequently with individual securities.
    Apr 12 05:36 PM | 2 Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    I saw that late Thursday night, thanks Felix. I guess HFT isn't that big a deal, right?? Oh, unless your actively manage money. This looks like the beginning of the end to this absurdity. First Goldman turns on the industry it helped build, realizing the oncoming negative publicity and potential gov't response. I would not be surprised if the next step is an end to paying for order flow. Interactive Brokers, providing a direct route to IEX, is pretty amazing.
    Apr 12 11:12 AM | Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    I agree with your assessment above of what could happen. I think requiring so-called market makers to maintain their bids for 1 second would bring an end to this nonsense. To be honest, IEX is pulling it off by slowing down the order routing process to a whopping 350 milliseconds. That's an eternity now in HFT time lines.

    It would seem that something is suddenly amiss in the market since this HFT subject became a hot topic and regulators/DOJ starting talking about insider trading. Liquidity has VANISHED, where are all those 12pm, 2pm, 3pm knee-jerk rallies we used to see on the 1% pullback? GONE.

    Perhaps they will come roaring back at 1786 on the S&P, or 1800, depending on what the washed out level is.... it will be interesting to see. But the overall market volume is flirting with 2009 financial crisis lows the past few months as the market goes to new highs, with HALF of that volume being this HFT absurdity..... so if that were to stop, half of the 50 some-odd lit exchanges/dark pools would go under. Perhaps that's why Goldman is considering shutting down Sigma-X.
    Apr 12 11:08 AM | 3 Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Good to hear from the CEO of BATS Global Markets. Thanks for reading.
    Apr 11 06:39 PM | 2 Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Thank you lotogo,
    I'll vote for 1-4, and double down on #5.
    I thought this topic might generate more interest, but perhaps HFT has already passed through the 24/7 news cycle. That's a shame, it will come back with a vengeance very soon.
    Apr 11 06:21 PM | 4 Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Mobyss,
    I think people will care about HFT when the market has a very, very significant decline that is based on a collective algo sell order, of simply a boycott of participation, which is what I see over the past 5 days.
    Apr 11 05:27 PM | 1 Like Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Interesting comment bobwhite, as Fidelity announced last night that they were doing something similar to what you are suggesting, but for mutual funds. The winds of change are blowing.
    Apr 11 02:04 PM | Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    That's an interesting approach to fills mobyss, thanks for the insight. I find fills much more difficult with my option orders.
    Apr 11 01:49 PM | Likes Like |Link to Comment
  • Of Course The Market Is Rigged! [View article]
    Very much appreciate that, thanks for reading Patient Value
    Apr 11 01:46 PM | 1 Like Like |Link to Comment
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