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Dark Pools Are Not Scary Damp Places Where Investors Get Ripped Off

There are times in life when you know things are wrong. Dark pools are one of them. Just the idea that we have exchanges offf the book is unamerican. I can assure you banks wouldn't be in such a huff about them if they didn't benefit their bottom line. Please once the banks start telling me how I benefit from something I don't want I know the thing is wrong. All market transactions on open exchanges. If HFT does not allow for trading large blocks of shares then HFT should be done away with. trading stratagies adopt to the exchange, you don't open new exchanges so banks/hedge funds can more easily maintain a trading strategy.

If it cost society more to have an open system where all players receive the same information it is worth the price. god knows what can happen in these pools, and it is simply something I don't want to worry about. seeing order flows, etc. It just opens a can of worms.

Please excuse me if I just decide not to trust banks at their word in this regard.

As for HFT, you should know that there really is no comprehennsive study on the subject. My intuitive gut is that they increase magnify a concept called resonance, meaning when I trade O try to find out what algorhythm the other person is using and follow it. this amplifies highs and lows. I am also sick of see what I think is a run and the HFT trader sells out. it turns the usual signals into useless mush. Very simply there should be a transaction tax. Think about it. the exchanges are paying people to trade on them. No wonder they want HFt. No paying for trading, and transaction tax. if you want to do HFT then do so, but by adding some kind of tax it means one would have to think about things like cash flow and valuation before trading. the idea that you get paid from the system for trading doesn't help anyone.

wth HFT, just mean those who have access to the discount window , and are the exclusive supplemental liquidy providers to and exchange have unlimited fire power in 2000 unit trades to do what ever they want with the market.

Big trades that would move the market and upset those delicate computer algos have to be kept off the system. that's why they don't want it.

Example from Jan to march indexes dropped but vix decreased. Because on lower trading volumes quants can tailor the drop to keep vix down. Big sell orders screw up the quants and that's what happened after Lehman. the systems couldn't cope and algo trading becomes useless. that is why dark pools are wanted. It just makes it easier for them to manipulate the market.

I have sold lots of vix options. I want to drop the market but not pay, I use my HFT quant fund to do it. See Jan to March this year. Means I can be short but not trigger those expensive options I have sold!!!

You think the market going down have anything to do with the call/put ratio being high. Now that the wall street players have sold so many calls they drop it in order not to pay off. they can buy puts, sell vix options, etc. control the movement with high speed computers that move like lightning. You can tailor your program to look at your entire portfolio and max your profits, shorts, call, etc.
Big trades fuck up the program so they have to be taken into dark pools. That is what this is about!!!