1) Flash order flow is minuscule in comparison to daily order flow.
2) Goldman and friend's dark pools are much more of an information source than any flash execution reveals.
Now, the heart of the matter imo is that flashing is pickpocketing the good ol boy's club ability to remain stealthy in their market manipulations (hidden/pegged orders, dark pools). You and I do not have the lobbyists to launch any offensive to HFT so who is to benefit here? GS and friends of course.
Now to get talking about the $20B/year due to HFT and what net public benefit was realized? Different story...
Paul Wilmott on High Frequency Trading: 'It May Increasingly Destabilize the Market' [View article]
Not sure I see the connection between HF trading and increased herding behavior as is suggested. I know both long and short volatility traders in the HF space whom are successful and they effectively prey on each other.
If there is any single threat to the concept of fair price it is the fact that there institutions of vast wealth being force fed fiat liquidity at below market prices at the taxpayers expense. Fed and Government's manufacturing of low rates translate directly into risk taking behavior.
Want to remove excess speculation? Increase rates, reserve ratios for banks and peg the dollar to precious metals.
JP Morgan: High Frequency Trading a Form of Parasitic Market Making [View article]
Lets be a little careful before pointing the finger at high frequency liquidity providers - If they are not providing a more sane price to the marketplace someone will step in and smash them. Firms like JPM, GS and friends are the ones with the real buying power might to move markets in the direction of choice while most proprietary traders cannot come close to their level of market bullying.
It is true that HF traders will increase microvolatility however this is typically unbiased in direction and has little if any negative effect on retail buyers of smaller size. I am not convinced that the above linked article by Arnuk even makes a strong case that there is any cost passed on to retail traders due to HF trading. Keep in mind the old NYSE specialists routinely front-ran order flow and had quite a generous timeframe to fill orders. A collection of independent liquidity providers is far preferable from a market efficiency and fairness point of view.
The true reason that HF trading pisses off GS and JPM is that these new boys are taking liquidity rebates away from the old boys market maker club. Exercise some healthy skepticism before pointing fingers at the HF traders please.
Quite amusing how you've attempted to price gold in terms of dollars, with nothing more than a government supplied guess value! By choosing 2007 dollars you've ignored the massive devaluation of the USD since this years fallout!
Fiat currencies and their controllers are in direct psychological warfare with the perceived value of gold. Anything that questions the value of their fiat currency is a direct threat to their ability to deeply manipulate the cost and wealth structure. Who would trust these statistics? Perhaps you might 'guess' price gold in terms of M3?
I am so very glad to see all above comments explain in some way how you are clearly insane. Where do people like you grow?
Yes we are headed into the economic toilet and if we had not voilated the consitution and created fiat currency neither this nor any 'remedies' would need consideration. The fed and our government as a whole is a wealth draining entity and must be eliminated from all markets entirely.
Cramer on Ultra-Short ETFs: Just Plain Wrong [View article]
I agree with Cramer for a different reason: These ETFs do not track nor are pegged to a reliable basket and offer no reliable method to assess valuation. I tend to think after examining both 2x long and short ETFs they do not offer value to purchasers of these products and seem to be designed to benefit their issues exclusively.
Bernanke's Great Lie: The Gold Standard and the Great Depression [View article]
Wow and all that 30s era gold confiscation without the propaganda machine called CNBC! Without a nation glued to the TV??!!
BTW: is it just me or are there some curiously short and ill thought out responses bashing gold and defending heli-ben? Is the noise-machine perhaps lurking in here?
Our Economic Crisis: The Grand Experiment [View article]
I do not believe that the fed and others are having trouble forecasting the market at all. Just because we were told wrong has nothing to do with the contents or quality of their forecasts. Their job in times like these (and all other times) is to manipulate behavior to their advantage.
Remember these boys at the fed are experts at behavioral finance and propaganda. It would be a mistake to think that their public comments reflect their true views in any way. Why else have they denied recent freedom of information requests?
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Latest | Highest ratedHome Builders Appear Stable: The Worst Is Likely Over [View article]
Judging High-Frequency Trading [View article]
1) Flash order flow is minuscule in comparison to daily order flow.
2) Goldman and friend's dark pools are much more of an information source than any flash execution reveals.
Now, the heart of the matter imo is that flashing is pickpocketing the good ol boy's club ability to remain stealthy in their market manipulations (hidden/pegged orders, dark pools). You and I do not have the lobbyists to launch any offensive to HFT so who is to benefit here? GS and friends of course.
Now to get talking about the $20B/year due to HFT and what net public benefit was realized? Different story...
Paul Wilmott on High Frequency Trading: 'It May Increasingly Destabilize the Market' [View article]
If there is any single threat to the concept of fair price it is the fact that there institutions of vast wealth being force fed fiat liquidity at below market prices at the taxpayers expense. Fed and Government's manufacturing of low rates translate directly into risk taking behavior.
Want to remove excess speculation? Increase rates, reserve ratios for banks and peg the dollar to precious metals.
Back to basics
Are GLD and SLV Legitimate Investment Vehicles? [View article]
High Frequency Trading Is a Zero-Sum Game: Impact on Intel, AMD [View article]
JP Morgan: High Frequency Trading a Form of Parasitic Market Making [View article]
It is true that HF traders will increase microvolatility however this is typically unbiased in direction and has little if any negative effect on retail buyers of smaller size. I am not convinced that the above linked article by Arnuk even makes a strong case that there is any cost passed on to retail traders due to HF trading. Keep in mind the old NYSE specialists routinely front-ran order flow and had quite a generous timeframe to fill orders. A collection of independent liquidity providers is far preferable from a market efficiency and fairness point of view.
The true reason that HF trading pisses off GS and JPM is that these new boys are taking liquidity rebates away from the old boys market maker club. Exercise some healthy skepticism before pointing fingers at the HF traders please.
Bill Gross: Buy Early What the Government Buys Later [View article]
Ponzi style economy yes and you're saying go against the inevitable collapse and buy what? You've already beaten us to it!
The Intrinsic Value of Gold [View article]
Fiat currencies and their controllers are in direct psychological warfare with the perceived value of gold. Anything that questions the value of their fiat currency is a direct threat to their ability to deeply manipulate the cost and wealth structure. Who would trust these statistics? Perhaps you might 'guess' price gold in terms of M3?
Preventing the Depression of 2009 [View article]
Yes we are headed into the economic toilet and if we had not voilated the consitution and created fiat currency neither this nor any 'remedies' would need consideration. The fed and our government as a whole is a wealth draining entity and must be eliminated from all markets entirely.
Cramer on Ultra-Short ETFs: Just Plain Wrong [View article]
Bernanke's Great Lie: The Gold Standard and the Great Depression [View article]
BTW: is it just me or are there some curiously short and ill thought out responses bashing gold and defending heli-ben? Is the noise-machine perhaps lurking in here?
Fed's Latest Move Means Low Profit, High Risk for Banks [View article]
This is the start of either the new world order or massive depression or both. But not until the fed has spent all our tax money making bets for us.
Jim Cramer Is Starting to Sound a Lot Like Lenin [View article]
BTW: It is a known and growing trick to trade against him the day after his advice.
Our Economic Crisis: The Grand Experiment [View article]
Remember these boys at the fed are experts at behavioral finance and propaganda. It would be a mistake to think that their public comments reflect their true views in any way. Why else have they denied recent freedom of information requests?
There's a Bull Lurking [View article]